<PAGE>
- -- -------- ----
- --------------------------------------------------------------------------------
THE HIRTLE CALLAGHAN TRUST SEMI-ANNUAL REPORT
February 15, 1996
We are pleased to present the December 31, 1995 semi-annual report for the
Hirtle Callaghan Trust. The Trust's portfolios were created to augment manager
supervision and to control cost while building superior investment programs.
The Hirtle Callaghan Trust, a diversified open-end management investment
company, was organized by Hirtle, Callaghan & Co., Inc. to enhance our ability
to acquire the services of independent, specialist money management
organizations for the clients we serve. The Trust currently consists of five
separate investment portfolios. Day-to-day portfolio management services are
provided to each of the Trust's five Portfolios by one or more independent
money management organizations, selected by, and under the general supervision
of, the Trust's Board of Trustees.
Shares of the Trust are available exclusively to investors who are clients of
Hirtle Callaghan or clients of financial intermediaries, such as investment
advisers, acting in a fiduciary capacity with investment discretion, that have
established relationships with Hirtle Callaghan.
The Trust currently consists of five separate Portfolios, listed below:
------------------------------------------------------------
- --
- --THE PORTFOLIOS
THE VALUE EQUITY PORTFOLIO, managed by Cowen Asset Management and
Institutional Capital Corporation, seeks total return by investing
in a diversified portfolio of equity securities of large companies
with relatively low price-earnings ratios and high dividend yields.
THE GROWTH EQUITY PORTFOLIO, managed by Jennison Associates and
Westfield Capital Management, seeks capital appreciation by
investing in a diversified portfolio of equity securities of large
and mid-capitalization companies with superior prospects for
earnings growth.
THE SMALL CAPITALIZATION EQUITY PORTFOLIO, managed by Clover
Capital Management and Frontier Capital Management seeks capital
appreciation by investing in a diversified portfolio of equity
securities of small-capitalization companies.
THE INTERNATIONAL EQUITY PORTFOLIO, managed by Brinson Partners,
seeks total return by investing in a diversified portfolio of
equity securities of companies based in developed countries other
than the United States of America.
THE LIMITED DURATION MUNICIPAL BOND PORTFOLIO, managed by Morgan
Grenfell Capital Management, seeks current income exempt from
Federal income tax by investing in a diversified portfolio of
relatively short duration municipal notes.
- --------------------------------------------------------------------------------
<PAGE>
THE HIRTLE CALLAGHAN TRUST
GROWTH EQUITY FUND
Portfolio of Investments (unaudited) -- December 31, 1995
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS -- 93.10%
JENNISON ASSOCIATES CAPITAL
CORP. PORTFOLIO -- 39.32%
ADVERTISING -- .74%
12,400 Omnicom Group, Inc. .......................... $ 396,956 $ 461,900
----------- -----------
AEROSPACE/DEFENSE -- 1.21%
9,600 Boeing Co. ................................... 624,599 752,400
----------- -----------
BEVERAGES -- 1.28%
4,700 Coca-Cola Co. ................................ 305,844 348,975
8,000 Pepsico, Inc. ................................ 374,743 447,000
----------- -----------
680,587 795,975
----------- -----------
BROADCASTING -- .49%
8,200 Infinity Broadcasting*........................ 261,267 305,450
----------- -----------
CAPITAL GOODS -- .48%
9,000 Harnischfeger Industries, Inc.*............... 329,531 299,250
----------- -----------
COMMERCIAL SERVICES -- .58%
10,500 CUC International, Inc.*...................... 335,200 358,313
----------- -----------
COMPUTER EQUIPMENT -- 3.77%
5,600 Adobe Systems, Inc. .......................... 333,625 347,200
8,700 Autodesk, Inc. ............................... 401,311 297,975
8,500 Compaq Computer Corp.*........................ 444,864 408,000
8,200 Dell Computer Corp.*.......................... 337,648 283,925
5,100 Microsoft Corp.*.............................. 491,214 447,525
9,000 Silicon Graphics*............................. 306,867 247,500
7,800 Symbol Technologies, Inc.*.................... 288,853 308,100
----------- -----------
2,604,382 2,340,225
----------- -----------
COMPUTER SOFTWARE -- 3.64%
4,100 Broderbund Software*.......................... 274,539 249,075
8,200 Cisco Systems, Inc.*.......................... 508,924 611,925
8,100 3COM Corp.*................................... 347,624 377,663
11,600 Computer Associates International, Inc. ...... 560,182 659,750
5,500 First Data Corp. ............................. 320,237 367,812
----------- -----------
2,011,506 2,266,225
----------- -----------
CONSUMER NON-DURABLES -- .60%
7,200 Gillette Company.............................. 305,023 375,300
----------- -----------
ELECTRONIC COMPONENTS &
INSTRUMENTS -- 6.25%
7,600 Applied Materials, Inc.*...................... 403,300 299,250
7,900 Duracell International Inc. .................. 368,399 408,825
10,600 Hewlett Packard Co. .......................... $ 851,168 $ 887,750
13,400 Intel Corp. .................................. 877,806 760,450
17,600 International Rectifier Corp.*................ 354,503 440,000
13,700 LSI Logic Corp.*.............................. 663,953 448,675
5,700 Motorola, Inc. ............................... 431,681 324,900
8,100 Nokia Corp. - ADR+............................ 535,783 314,887
----------- -----------
4,486,593 3,884,737
----------- -----------
ENTERTAINMENT -- 1.24%
10,500 Harrah's Entertainment, Inc. ................. 296,393 254,625
8,700 The Walt Disney Co. .......................... 509,919 513,300
----------- -----------
806,312 767,925
----------- -----------
FINANCIAL SERVICES -- 2.05%
5,000 Federal National Mortgage Association......... 470,245 620,625
34,200 Hibernia Corp. Cl. A.......................... 333,935 367,650
3,500 Morgan Stanley Group, Inc. ................... 290,003 282,187
----------- -----------
1,094,183 1,270,462
----------- -----------
FOREST PRODUCTS & PAPER -- .35%
5,200 Champion International Corp. ................. 283,918 218,400
----------- -----------
HEALTH CARE -- 1.33%
2,900 Johnson & Johnson............................. 251,027 248,313
8,800 United Healthcare Corp. ...................... 405,891 576,400
----------- -----------
656,918 824,713
----------- -----------
INSURANCE -- 1.30%
1,900 Cigna Corp. .................................. 197,946 196,175
4,200 ITT Hartford Group*........................... 201,687 203,175
9,000 PMI Group..................................... 432,437 407,250
----------- -----------
832,070 806,600
----------- -----------
LODGING -- .85%
3,000 Hilton Hotels Corp. .......................... 205,047 184,500
15,400 Promus Hotels Corp.*.......................... 328,608 342,650
----------- -----------
533,655 527,150
----------- -----------
MANUFACTURING -- .48%
5,100 Luxottica Group
SPA - ADR+................................... 226,777 298,350
----------- -----------
MULTI-INDUSTRY -- .50%
5,800 ITT Corp.*.................................... 291,197 307,400
----------- -----------
</TABLE>
See accompanying notes to financial statements.
1
<PAGE>
THE HIRTLE CALLAGHAN TRUST
GROWTH EQUITY FUND
Portfolio of Investments (continued) -- December 31, 1995
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
JENNISON ASSOCIATES CAPITAL
CORP. PORTFOLIO (CONTINUED)
OFFICE EQUIPMENT -- .40%
1,800 Xerox Corp. .................................. $ 246,717 $ 248,175
----------- -----------
PERSONAL CARE -- .45%
7,900 Estee Lauder Co.*............................. 205,400 275,512
----------- -----------
PHARMACEUTICALS -- 4.44%
15,600 Astra A Fria - ADR+........................... 529,028 623,688
3,600 Chiron Corp. ................................. 318,793 397,800
9,000 Eli Lilly & Co. .............................. 345,825 506,250
4,700 Merck & Co. .................................. 237,924 309,025
4,400 Pfitzer Inc. ................................. 273,668 277,200
11,600 Smithkline Beecham
plc - ADR+................................... 533,253 643,800
----------- -----------
2,238,491 2,757,763
----------- -----------
PUBLISHING & PRINTING -- .78%
8,800 Reuters Holding plc - ADR+.................... 456,913 485,100
----------- -----------
RAW MATERIALS -- .39%
6,700 Minerals Technology, Inc. .................... 250,490 244,550
----------- -----------
RESTAURANT -- .55%
7,600 McDonalds Corp. .............................. 287,380 342,950
----------- -----------
RETAIL -- 2.04%
14,900 Autozone, Inc.*............................... 396,534 430,238
9,700 Dollar General Corp. ......................... 278,908 201,275
6,200 Home Depot, Inc. ............................. 262,701 296,825
6,400 Kohl's Corp.*................................. 339,426 336,000
----------- -----------
1,277,569 1,264,338
----------- -----------
TELECOMMUNICATIONS -- 2.03%
19,500 MCI Communications Corp. ..................... 466,848 509,437
9,900 Tellabs, Inc.*................................ 435,976 366,300
11,000 Vodafone Group plc - ADR+..................... 460,410 387,750
----------- -----------
1,363,234 1,263,487
----------- -----------
TEXTILES AND APPAREL -- .67%
10,700 Gucci Group*.................................. 235,400 415,963
----------- -----------
TRANSPORTATION -- .43%
1,500 UAL Corp.*.................................... 227,488 267,750
----------- -----------
TOTAL -- JENNISON ASSOCIATES CAPITAL CORP. ... 23,549,756 24,426,363
----------- -----------
WESTFIELD CAPITAL MANAGEMENT
PORTFOLIO -- 53.78%
BROADCASTING -- 1.25%
16,400 Viacom, Inc.*................................. $ 800,297 $ 776,950
----------- -----------
CAPITAL GOODS -- .94%
17,500 Harnischfeger Industries, Inc.*............... 638,032 581,875
----------- -----------
CHEMICALS -- .75%
17,000 Bush Boake Allen, Inc.*....................... 492,047 465,375
----------- -----------
COMMERCIAL SERVICES -- 1.42%
20,000 Service Corp. International................... 807,300 880,000
----------- -----------
COMPUTER EQUIPMENT -- 5.38%
17,400 Adobe Systems, Inc. .......................... 1,009,596 1,078,800
21,000 Ceridan Corp.*................................ 895,055 866,250
48,900 Computervision Corp.*......................... 541,404 751,837
7,000 International Business Machines Corp. ........ 770,195 642,250
----------- -----------
3,216,250 3,339,137
----------- -----------
COMPUTER SOFTWARE -- 8.04%
21,000 3COM Corp.*................................... 780,563 979,125
9,700 Cisco Systems, Inc.*.......................... 580,300 723,863
13,500 Computer Sciences Corp.*...................... 813,572 948,375
25,000 DST Systems*.................................. 621,200 712,500
10,625 First Data Corp. ............................. 593,315 710,582
11,000 Sterling Software Inc.*....................... 644,160 686,125
10,000 Net Manage Inc.*.............................. 261,750 232,500
----------- -----------
4,294,860 4,993,070
----------- -----------
ELECTRICAL AND ELECTRONICS -- .82%
35,800 Alpha Industries, Inc.*....................... 631,562 505,675
----------- -----------
ENTERTAINMENT -- 1.38%
14,500 The Walt Disney Co.*.......................... 846,233 855,500
----------- -----------
FINANCIAL SERVICES -- 2.64%
13,500 Chemical Banking Corp. ....................... 720,060 793,125
64,050 Mercury Finance Co. .......................... 852,637 848,663
----------- -----------
1,572,697 1,641,788
----------- -----------
FOOD PROCESSING -- 1.08%
8,700 Kellogg Co. .................................. 603,985 672,075
----------- -----------
</TABLE>
See accompanying notes to financial statements.
2
<PAGE>
THE HIRTLE CALLAGHAN TRUST
GROWTH EQUITY FUND
Portfolio of Investments (continued) -- December 31, 1995
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
WESTFIELD CAPITAL MANAGEMENT
PORTFOLIO (CONTINUED)
HOUSEHOLD PRODUCTS -- 2.61%
18,500 First Brands Corp. ........................... $ 795,182 $ 881,063
40,000 Williams-Sonoma, Inc.*........................ 874,499 740,000
----------- -----------
1,669,681 1,621,063
----------- -----------
INSURANCE -- 1.32%
8,900 American International
Group, Inc. ................................. 685,035 823,250
----------- -----------
MACHINERY & ENGINEERING -- .60%
20,500 Albany International Corp. ................... 521,080 371,563
----------- -----------
MANUFACTURING -- 1.07%
21,000 Danaher Corp. ................................ 679,489 666,750
----------- -----------
MEDICAL BIOTECHNOLOGY -- 1.21%
13,500 Medtronic Inc. ............................... 715,553 754,312
----------- -----------
MEDICAL MANAGEMENT &
SERVICES -- 6.45%
35,000 Apria Healthcare Group, Inc.*................. 1,147,375 988,750
66,400 Horizon/CMS Healthcare Corp.*................. 1,469,719 1,676,600
35,000 Quorum Health Group*.......................... 804,475 770,000
25,000 Summit Care Corp.*............................ 565,000 571,875
----------- -----------
3,986,569 4,007,225
----------- -----------
MEDICAL SUPPLIES -- 5.05%
30,000 De Rigo SPA - ADR+*........................... 676,138 682,500
25,000 Genesis Health Ventures, Inc.*................ 821,849 912,500
15,400 Idexx Laboratories, Inc.*..................... 508,176 723,800
14,100 Nellcor, Inc.*................................ 751,601 817,800
----------- -----------
2,757,764 3,136,600
----------- -----------
OIL & GAS -- 4.36%
17,800 Halliburton Co. .............................. 728,605 901,125
33,750 Weatherford International, Inc.*.............. 868,771 974,531
16,500 Western Atlas, Inc.*.......................... 722,690 833,250
----------- -----------
2,320,066 2,708,906
----------- -----------
PACKAGING -- 1.43%
23,700 Aptargroup, Inc. ............................. $ 780,471 $ 885,787
----------- -----------
REAL ESTATE -- 2.64%
40,400 Beacon Properties Corp.*...................... 866,803 929,200
31,200 Oasis Residential, Inc. ...................... 700,559 709,800
----------- -----------
1,567,362 1,639,000
----------- -----------
RESTAURANT -- .39%
10,000 Quality Dining Inc.*.......................... 237,500 242,500
----------- -----------
RETAIL -- .42%
10,000 Adidas AG-ADR+*............................... 241,066 266,250
----------- -----------
TELECOMMUNICATION
EQUIPMENT -- .54%
5,000 Eastman Kodak Co. ............................ 340,350 335,000
----------- -----------
TELECOMMUNICATIONS -- .59%
14,700 Transaction Network
Services, Inc.*.............................. 368,545 367,500
----------- -----------
TRANSPORTATION -- 1.40%
20,000 Continental Airlines CI. B ................... 876,110 870,000
----------- -----------
TOTAL -- WESTFIELD CAPITAL MANAGEMENT......... 31,649,904 33,407,151
----------- -----------
TOTAL -- COMMON STOCKS........................ 55,199,660 57,833,514
----------- -----------
TOTAL INVESTMENTS -- 93.10%................... $55,199,660++ 57,833,514
===========
Cash and Other Assets in Excess of
Liabilities -- 6.90%......................... 4,282,945
-----------
TOTAL NET ASSETS -- 100.00%................... $62,116,459
===========
</TABLE>
+ American Depository Receipts
++ The cost of securities for Federal income tax purposes is substantially the
same.
* Non-income producing security.
See accompanying notes to financial statements.
3
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY FUND
Portfolio of Investments (unaudited) -- December 31, 1995
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS -- 92.70%
AUSTRALIA -- 4.07%
21,000 Amcor Ltd. (Packaging).................... $ 158,476 $ 148,308
24,500 Australia New Zealand Bank Group
(Financial).............................. 101,384 114,926
39,500 Broken Hill Proprietary Co. Ltd.
(Metals - Diversified)................... 550,007 557,922
14,000 Cra Limited (Mining)...................... 217,461 205,446
45,000 David Jones Limited
(Retail Store)*.......................... 67,830 68,579
12,191 #Lend Lease Corp. Ltd. (Financial
Services)................................ 167,585 176,724
25,700 National Australia Bank Ltd. (Financial).. 214,980 231,175
25,000 News Corp.
(Publishing & Printing).................. 142,705 133,440
44,800 Pacific Dunlop Ltd.
(Holding Company)........................ 99,607 105,242
45,100 Qantas Airways Ltd. (Transportation)...... 71,897 75,101
29,200 Santos Ltd. (Oil & Gas)................... 75,866 85,310
48,200 Westpac Bank Corp. (Financial)*........... 189,666 213,558
14,000 WMC Limited
(Metals - Diversified)................... 92,918 89,922
----------- -----------
2,150,382 2,205,653
----------- -----------
BELGIUM -- 2.55%
2,000 Delhaize Freres NPV
(Retail - Grocery)....................... 82,411 82,993
1,260 Electrabel NPV (Utilities)................ 273,130 300,000
860 Fortis AG NPV (Insurance)................. 90,639 104,721
570 Groupe Bruxells Lambert NPV
(Financial Services)..................... 71,708 79,200
780 Kredietbank NPV (Financial Services)...... 181,928 213,572
610 Petrofina SA NPV
(Oil & Gas).............................. 181,240 186,942
BELGIUM (CONTINUED)
920 Societe Generale de Belique Paris
(Metals - Diversified)................... $ 68,081 $ 76,197
190 Solvay SA (Chemical)...................... 99,709 102,755
450 Tractebel NPV (Utilities)................. 162,871 185,969
770 Union Miniere NPV (Mining)*............... 50,330 51,595
----------- -----------
1,262,047 1,383,944
----------- -----------
CANADA -- 3.44%
5,200 Alcan Aluminum Ltd.
(Metals - Diversified)................... 176,557 161,547
11,200 Bank of Montreal (Financial Services)..... 244,097 254,545
4,100 Barrick Gold Corp. (Mining)............... 105,880 108,211
13,200 Canadian Pacific Ltd.
(Holding Company)........................ 225,300 240,726
5,300 Imperial Oil Ltd.
(Oil & Gas).............................. 189,994 191,853
4,200 Moore Corp. Ltd.
(Business Equipment)..................... 75,392 78,904
3,600 Noranda Inc.
(Metals - Diversified)................... 77,242 74,230
2,400 Norcen Energy
(Oil & Gas).............................. 35,746 36,070
1,900 Northern Telecom Ltd.
(Telecommunications)..................... 69,909 81,314
7,100 Nova Corp of Alberta (Chemical)........... 58,174 57,258
9,000 Royal Bank of Canada (Financial
Services)................................ 199,847 205,370
3,900 Seagram Co. Ltd.
(Wine & Spirits)......................... 141,799 134,385
11,700 Thompson Corp.
(Publishing & Printing).................. 155,778 162,977
5,500 Trans Canada Pipeline
(Oil & Gas).............................. 76,100 76,109
----------- -----------
1,831,815 1,863,499
----------- -----------
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY FUND
Portfolio of Investments (continued) -- December 31, 1995
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
FRANCE -- 7.76%
1,300 Accor Ltd. (Lodging)...................... $ 166,446 $ 168,493
1,830 Alcatel Alsthom (Telecommunications)...... 179,208 157,950
5,710 Banque National de Paris
Cl A (Financial Services)................ 247,826 257,858
2,960 Carnaudmetalbox (Packaging)............... 124,990 135,547
1,460 Cie Bancaire SA
(Financial Services)..................... 157,669 163,562
2,040 Cie de Saint Gobain
(Building Materials)..................... 258,176 226,037
490 Colas
(Financial Services)..................... 89,405 82,141
3,160 Compagnie de Suez
(Financial Services)..................... 138,618 130,493
2,680 Credit Local de France (Financial
Services)................................ 227,598 214,768
720 Gan (Insurance)*.......................... 22,613 26,347
2,700 Generale des Eaux (Utilities)............. 290,887 269,856
680 Groupe de la Cite
(Publishing & Printing).................. 113,363 74,233
1,840 LVMH Moet Hennessey - Louis Vuitton
(Wine & Spirits)......................... 344,666 383,678
3,510 Michelin Cl B
(Tire & Rubber).......................... 151,621 140,139
2,480 Pechiney Cert D'Invest (Manufacturing).... 149,496 93,793
3,200 Peugeot SA (Auto Related)................. 425,448 422,602
2,405 Sanofi (Pharmaceuticals).................. 140,950 154,332
2,760 Societe Generale (Financial Services)..... 302,229 341,360
3,410 Societe Nationale Elf Acquitaine
(Oil & Gas).............................. 252,073 251,519
5,410 Total Co. Cl B
(Oil & Gas).............................. 329,689 365,526
5,600 UAP (Insurance)........................... 136,083 146,422
----------- -----------
4,249,054 4,206,656
----------- -----------
GERMANY -- 5.61%
174 #Allianz AG Holding (Insurance)........... $ 318,773 $ 339,785
7 #Allianz AG Holdings (Insurance).......... 12,322 12,697
607 BASF AG (Chemical)........................ 135,850 135,449
726 Bayer AG (Chemical)....................... 188,613 191,920
3,846 Bayer Vereinsbank (Financial Services).... 106,075 114,429
315 Bayerische Motoren Werke AG
(Auto Related)........................... 175,004 161,702
642 Commerzbank AG (Banking).................. 146,834 152,003
225 Daimler Benz AG (Auto Related)............ 109,966 113,459
9,093 Deutsche Bank AG (Financial Services)..... 416,768 431,660
672 Hoechst AG (Chemical)..................... 165,242 182,573
403 Kaufhof Holdings AG (Retail).............. 141,273 123,000
763 Mannesmann AG (Machinery & Engineering)... 246,965 243,373
114 Muenchener Rueckver AG (Insurance)........ 224,199 248,415
521 Preussag AG (Holding Company)............. 156,437 145,915
450 RWE AG (Oil & Gas)........................ 163,929 163,430
1,008 Schering AG (Pharmaceuticals)............. 72,500 66,902
5,022 Veba AG (Utilities)....................... 194,474 213,605
----------- -----------
2,975,224 3,040,317
----------- -----------
ITALY -- 2.58%
10,100 Assic Generali (Insurance)................ 245,682 245,028
7,100 Eni Ads - ADR+
(Oil & Gas)*............................. 233,450 243,175
75,000 Fiat Spa (Auto Related)................... 168,338 137,233
24,000 Instituto Mobiliare Italiano Spa
(Financial Services)..................... 146,278 151,429
27,000 Italgas (Utilities)....................... 77,747 82,283
7,000 #Mediobanca Spa (Financial Services)*..... 50,132 48,561
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY FUND
Portfolio of Investments (continued) -- December 31, 1995
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
ITALY (CONTINUED)
101,000 Montedison Spa (Chemical)*............... $ 74,595 $ 67,805
11,000 Rinascente
(Retail - Department Store)............. 63,227 66,698
13,000 Rinascente Savings
(Retail - Department Store)............. 37,160 36,911
15,000 Sai Risp (Insurance)..................... 69,990 62,370
94,000 Telecom Italia Mobile de Risp
(Telecommunications)*................... 95,000 99,047
128,000 Telecom Italia de Risp
(Telecommunications).................... 166,624 156,840
----------- -----------
1,428,223 1,397,380
----------- -----------
JAPAN -- 37.00%
31,000 Amada
(Hand/Machine Tools) ................... 335,150 306,574
39,000 Asahi Glass Co. (Building Materials)..... 439,064 434,846
19,000 Bank of Tokyo (Financial Services)....... 299,747 333,430
25,000 Canon, Inc. (Business Equipment)......... 451,363 453,267
9,450 Canon Sales (Jewelry).................... 242,779 251,963
28,000 Citizen Watch Co. (Jewelry).............. 217,994 214,466
30,000 Dai Nippon Printing (Publishing &
Printing)............................... 487,634 509,017
13,000 Daiichi Pharmaceutical Co. Ltd.
(Pharmaceutical)........................ 185,676 185,282
30,000 Daikin Kogyo Co. (Machinery &
Engineering)............................ 270,921 293,775
15,000 Daiwa House Industries
(Manufacturing/Housing)................. 227,758 247,237
8,000 Fanuc Co.
(Electronic Components)................. 352,098 346,713
24,000 Fujitsu
(Computer Equipment).................... 271,666 267,597
JAPAN (CONTINUED)
63,000 Hitachi Ltd.
(Electrical & Electronics).............. $ 675,056 $ 635,253
19,000 Honda Motor Co. (Auto Related)........... 333,888 392,379
28,000 Inax (Industrial Components)............. 259,874 266,046
12,000 Isetan
(Retail - Department Store)............. 173,480 197,789
16,000 Ito-Yokado Co.
(Retail - Grocery)...................... 874,151 986,620
37,000 Keio Teito Electric Railway
(Transportation)........................ 217,518 215,600
34,000 Kintetsu
(Kinki Nippon Railway)
(Transportation)........................ 278,007 257,126
21,000 Kirin Brewery Co. Ltd (Brewery).......... 246,158 248,400
18,000 Kuraray Co. Ltd.
(Textiles & Apparel).................... 181,392 197,208
6,000 Maeda Road Construction (Engineering &
Construction)........................... 121,188 111,111
9,000 Marui Co.
(Retail - Department Store)............. 155,212 187,609
51,000 Matsushita Electric Co. (Electronic
Components)............................. 823,820 830,716
14,000 Mitsubishi Bank (Financial Services)..... 307,870 329,843
40,000 Mitsubishi Paper Mills (Forest Products &
Paper).................................. 239,202 240,838
47,000 NGK Insulators
(Industrial Components)................. 435,890 469,362
25,000 Nichii Co.
(Retail - Grocery)...................... 292,546 332,073
2,800 Nintendo (Toys).......................... 193,076 213,108
20,000 Nippon Denso Co. Ltd. (Electrical &
Electronics)............................ 368,076 374,249
20,000 Nippon Meat Packers (Food Processing).... 273,513 290,867
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY FUND
Portfolio of Investments (continued) -- December 31, 1995
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
JAPAN (CONTINUED)
24,000 Nippon Steel Corp. (Steel)............... $ 79,448 $ 82,373
3,000 #Orix Corp.
(Financial Services).................... 107,415 123,618
137,000 Osaka Gas Corp. (Utilities).............. 462,741 474,200
15,000 Pioneer Electronics (Electrical &
Electronics)............................ 295,955 274,869
23,000 Sankyo Pharmaceutical (Pharmaceuticals).. 512,538 517,355
8,000 Secom Co.
(Electronic Components)................. 513,251 556,913
10,000 Seino Transport
(Trucking & Leasing).................... 163,984 167,733
63,000 Sekisui House (Manufacturing/Housing).... 782,743 806,283
18,000 Shinmaywa Industries
(Auto Related).......................... 152,901 148,691
9,700 Sony Corp. (Electrical & Electronics).... 526,615 582,150
27,000 Sumitomo Electric (Metal
Fabricate/Hardware)..................... 337,466 324,608
33,000 Sumitomo Trust & Banking (Financial
Services)............................... 623,675 700,698
35,000 Takeda Chemical Industries
(Pharmaceuticals)....................... 475,477 576,886
9,000 TDK Corp. (Electrical & Electronics)..... 453,805 459,860
27,000 Tokio Marine & Fire (Insurance).......... 310,410 353,403
12,795 Tokyo Electric Power (Utilities)......... 340,728 342,391
22,800 Tokyo Steel (Steel)...................... 449,104 420,012
16,000 Tonen Corp. (Oil & Gas).................. 239,236 234,245
123,000 Toray Industries Inc. (Chemical)......... 781,015 810,938
102,000 Toshiba Corp. (Electrical &
Electronics)............................ 748,126 800,058
22,000 Toyo Suisan Kaisha
(Food Processing)....................... 225,763 273,027
9,000 Toyota Motor Corp.
(Auto Related).......................... 177,274 191,100
12,000 Yamazaki Baking Co., Ltd. (Food
Processing)............................. 209,121 223,386
----------- -----------
19,200,558 20,065,161
----------- -----------
MALAYSIA -- 0.87%
3,000 Genting BHD (Entertainment).............. $ 27,309 $ 25,054
7,000 Hume Industries
(Building Materials).................... 33,350 33,641
14,000 Kuala Lumpur (Agriculture)............... 43,565 44,396
15,000 Land & General Holdings (Forest Products
& Paper)................................ 32,943 32,500
10,000 Malayan Banking (Financial Services)..... 84,048 84,302
4,000 Nestle Malaysia (Food Processing)........ 29,420 29,309
25,000 Sime Darby Berhad (Holding Company)...... 64,865 66,476
11,000 Telecom Malaysia (Telecommunications).... 82,361 85,799
18,000 Tenaga Nasional (Utilities).............. 70,085 70,908
----------- -----------
467,946 472,385
----------- -----------
NETHERLANDS -- 6.00%
8,961 ABN - Amro Holdings NV (Financial
Services)............................... 346,248 408,639
1,320 DSM NV (Chemical)........................ 108,468 108,696
7,746 International Nederlanden Group
(Financial Services).................... 428,575 518,011
5,357 Koninklijke NV (Commercial Services)..... 184,413 194,830
2,750 Philips Electronics (Electronic
Components)............................. 123,172 99,501
1,200 Royal Dutch
Petroleum - ADR+
(Oil & Gas)............................. 144,806 169,350
8,120 Royal Dutch Petroleum
(Oil & Gas)............................. 968,253 1,135,686
3,360 Unilever NV (Food Processing)............ 423,396 472,664
1,050 Verenigde Ned Uitgev Ver Bezit
(Publishing & Printing)................. 141,700 144,301
----------- -----------
2,869,031 3,251,678
----------- -----------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY FUND
Portfolio of Investments (continued) -- December 31, 1995
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
NEW ZEALAND -- 1.98%
267,400 Brierly Investment Co. (Investment
Company)................................ $ 197,229 $ 211,410
112,400 Carter Holt Harvey
(Forest Products & Paper)............... 260,006 242,360
104,800 Fletcher Challenge Ltd. (Forest Products
& Paper)................................ 271,324 241,721
7,917 Fletcher Forestry (Forest Products &
Paper).................................. 22,872 11,277
3,100 New Zealand
Telecom - ADR+ (Telecommunications)..... 192,345 215,063
35,800 Telecom Corp of New Zealand
(Telecommunications)*................... 150,776 154,385
----------- -----------
1,094,552 1,076,216
----------- -----------
SPAIN -- 2.68%
4,100 Banco Bilbao Vizcaya (Financial
Services)............................... 124,547 147,842
900 Banco Intercon (Financial Services)...... 78,695 110,752
600 Banco Popular Espanol (Financial
Services)............................... 91,388 110,554
2,200 Banco Santander SA (Financial Services).. 90,490 87,631
10,400 Compania Sevillana de Electricadad
(Utilities)............................. 67,915 80,838
3,000 Empresa Nac Electric (Utilities)......... 150,610 170,064
26,300 Iberdrola SA (Utilities)................. 203,830 240,886
2,300 Repsol SA - ADR+
(Oil & Gas)............................. 75,038 75,613
3,400 Repsol SA (Oil & Gas).................... 102,947 111,518
20,900 Telfonica de Espana
(Telecommunications).................... 278,445 289,727
2,300 Viscofan (Food Processing)............... 33,884 27,329
----------- -----------
1,297,789 1,452,754
----------- -----------
SWITZERLAND -- 2.13%
129 Ciba-Giegy AG (Pharmaceuticals)*......... $ 92,006 $ 113,679
1,214 CS Holding Co. (Financial Services)*..... 111,014 124,636
301 Nestle SA
(Food Processing)*...................... 306,768 333,457
31 Roche Holding
AS - Genusshein (Pharmaceuticals)....... 220,846 245,594
125 Schweiz Bankgesellschaft (Financial
Services)*.............................. 122,778 135,657
48 Societe Generale Surveillance (Commercial
Services)............................... 85,396 95,433
355 Zurich Versicherung (Insurance)*......... 88,290 106,333
----------- -----------
1,027,098 1,154,789
----------- -----------
UNITED KINGDOM -- 16.03%
62,800 Asda Group
(Retail - Grocery)...................... 102,895 107,665
24,900 Bass plc (Brewery)....................... 258,141 277,767
29,300 Bat Industries (Tobacco)................. 236,236 257,980
36,600 Bet (Commercial Services)................ 77,011 72,117
11,100 Booker plc
(Food Processing)....................... 70,927 59,931
101,500 British Gas plc (Utilities).............. 427,282 399,992
60,000 British Petroleum Co. plc (Oil & Gas).... 445,635 501,755
93,600 British Telecom plc
(Telecommunications).................... 570,082 514,080
12,930 Charter
(Machinery & Engineering)............... 178,486 173,125
41,400 Coats Viyella
(Textiles & Apparel).................... 136,062 112,406
48,000 FKI plc
(Machinery & Engineering)............... 125,159 122,879
131,100 General Electric plc (Electrical &
Electronics)............................ 639,562 722,076
11,800 Glaxo Wellcome plc (Pharmaceuticals)..... 146,823 167,515
66,900 Grand Metropolitan plc (Wine & Spirits).. 439,230 481,610
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
THE HIRTLE CALLAGHAN TRUST
INTERNATIONAL EQUITY FUND
Portfolio of Investments (continued) -- December 31, 1995
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
UNITED KINGDOM (CONTINUED)
37,700 Guinness (Wine & Spirits).............. $ 294,853 $ 277,250
60,400 Hanson plc (Holding Company)........... 199,284 180,393
41,100 Hillsdown Holdings (Food Processing)... 123,054 107,766
90,200 House of Fraser
(Retail - Department Store)........... 204,605 250,502
16,400 Legal & General Group plc (Insurance).. 150,034 170,479
18,600 Lloyds Abbey Life (Insurance).......... 120,903 129,860
135,200 Lloyds Bank (Financial Services)....... 559,533 720,535
26,200 Lucas Industries (Auto Parts).......... 78,156 73,575
30,100 Marks & Spencers plc
(Retail - Department Store............ 204,670 210,151
50,000 Mirror Group plc (Publishing &
Printing)............................. 119,535 133,429
25,500 National Power plc (Utilities)......... 197,644 177,837
27,700 National Westminster Bank (Financial
Services)............................. 254,690 278,918
20,700 Ocean Group (Transportation)........... 111,326 124,610
20,300 P & O Steam (Transportation)........... 167,861 149,918
16,800 Reckitt & Colman (Household Products).. 179,575 185,845
11,400 Redland (Building Materials)........... 68,360 68,803
UNITED KINGDOM (CONTINUED)
6,000 RJB Mining plc (Mining)................ $ 50,324 $ 51,013
69,500 Rolls Royce (Aerospace/Defense)........ 191,811 203,797
22,000 Royal Insurance (Insurance)............ 121,178 130,388
96,700 Sears (Retail - Department Store)...... 158,931 156,031
32,100 Sedgwick Group (Insurance)............. 58,002 60,262
16,500 Smithkline Beecham (Pharmaceuticals)... 161,480 179,710
64,600 Tesco (Retail - Grocery)............... 316,560 297,675
18,600 Thames Water (Utilities)............... 155,451 162,181
7,100 Unilever (Food Processing)............. 137,394 145,740
15,000 W.H. Smith
(Retail - Department Store)........... 87,810 98,675
----------- -----------
8,326,555 8,696,241
----------- -----------
TOTAL -- COMMON STOCKS................. 48,180,274 50,266,673
----------- -----------
TOTAL INVESTMENTS -- 92.70%............ $48,180,274++ 50,266,673
===========
Cash and Other Assets in Excess of
Liabilities -- 7.30%.................. 3,958,020
-----------
TOTAL NET
ASSETS -- 100.00%..................... $54,224,693
===========
</TABLE>
+ American Depository Receipts.
# Passive Foreign Investment Company.
++ The cost for Federal income tax purposes is substantially the same.
* Non-income producing security.
See accompanying notes to financial statements.
9
<PAGE>
THE HIRTLE CALLAGHAN TRUST
VALUE EQUITY FUND
Portfolio of Investments (unaudited) -- December 31, 1995
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS -- 96.51%
COWEN ASSET MANAGEMENT
PORTFOLIO -- 38.75%
ENERGY EQUIPMENT & SERVICES -- 2.84%
16,000 Chevron Corp. ............................. $ 782,797 $ 840,000
9,500 Exxon Corp. ............................... 675,233 761,188
----------- -----------
1,458,030 1,601,188
----------- -----------
FINANCIAL SERVICES -- 5.71%
14,000 First Union Corp. ......................... 707,640 778,750
22,000 Keycorp Ltd. .............................. 732,295 797,500
22,300 National City Corp. ....................... 679,025 738,687
28,000 PNC Bank Corp. ............................ 768,780 903,000
----------- -----------
2,887,740 3,217,937
----------- -----------
HOLDING COMPANIES -
DIVERSIFIED -- 1.49%
55,000 Hanson plc - ADR+.......................... 903,806 838,750
----------- -----------
INSURANCE -- 1.51%
22,000 Ohio Casualty Corp. ....................... 742,088 852,500
----------- -----------
OIL & GAS -- 2.90%
7,500 Atlantic Richfield Co. .................... 825,788 830,625
24,000 National Fuel Gas Co. ..................... 686,653 807,000
----------- -----------
1,512,441 1,637,625
----------- -----------
PERSONAL CARE -- 1.02%
12,000 Tambrands, Inc. ........................... 542,526 573,000
----------- -----------
PUBLISHING & PRINTING -- 1.38%
12,000 Dun & Bradstreet Corp. .................... 699,145 777,000
----------- -----------
REAL ESTATE -- 1.97%
37,000 New Plan Realty Trust...................... 817,783 809,375
8,000 Weingarten Realty*......................... 276,355 304,000
----------- -----------
1,094,138 1,113,375
----------- -----------
RETAIL -- 1.52%
18,000 Penney (J.C.) Co. ......................... 835,561 857,250
----------- -----------
TELECOMMUNICATIONS -- 5.44%
11,000 Bell Atlantic Corp. ....................... 660,373 735,625
17,600 GTE Corp. ................................. 660,531 774,400
15,000 NYNEX Corp. ............................... 698,788 810,000
22,300 Pacific Telesis Group...................... 649,463 749,838
----------- -----------
2,669,155 3,069,863
----------- -----------
TOBACCO -- 1.42%
18,000 American Brands Inc. ...................... 766,792 803,250
----------- -----------
UTILITIES -- 11.55%
27,000 Baltimore Gas & Electric Co. .............. $ 702,519 $ 769,500
29,000 Brooklyn Union Gas Co. .................... 733,765 848,250
26,600 Central & South West Corp. ................ 661,371 741,475
35,000 MCN Corp. ................................. 669,913 813,750
12,000 Piedmont Natural Gas Co. .................. 244,557 279,000
28,900 Scana Corp. ............................... 667,196 827,262
30,200 Southern Co. .............................. 661,925 743,675
16,000 Union Electric Co. ........................ 578,834 668,000
28,000 Utilcorp United Inc. ...................... 776,768 822,500
----------- -----------
5,696,848 6,513,412
----------- -----------
TOTAL -- COWEN ASSET MANAGEMENT............ 19,808,270 21,855,150
----------- -----------
INSTITUTIONAL CAPITAL MANAGEMENT
CORP PORTFOLIO -- 57.76%
AEROSPACE/DEFENSE -- 2.29%
7,100 McDonnell Douglas Corp. ................... 595,942 653,200
6,700 United Technologies Corp. ................. 572,984 635,662
----------- -----------
1,168,926 1,288,862
----------- -----------
BASIC INDUSTRY -- 1.32%
17,250 Weyerhaeuser Co. .......................... 788,538 746,063
----------- -----------
BANKING -- 3.07%
13,350 Bankamerica Corp. ......................... 795,213 864,413
12,850 Citicorp................................... 880,188 864,163
----------- -----------
1,675,401 1,728,576
----------- -----------
BEVERAGES -- 1.11%
11,200 Pepsico Inc. .............................. 563,595 625,800
----------- -----------
BROADCASTING -- 1.40%
20,000 E.W. Scripps Co. .......................... 802,961 787,500
----------- -----------
CHEMICALS -- 4.52%
8,000 Dow Chemical Co. .......................... 597,680 563,000
12,800 DuPont Ei DeNemours & Co. ................. 867,461 894,400
8,050 Hoechst AG - ADR+.......................... 998,681 1,094,317
----------- -----------
2,463,822 2,551,717
----------- -----------
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
THE HIRTLE CALLAGHAN TRUST
VALUE EQUITY FUND
Portfolio of Investments (continued) -- December 31, 1995
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
COMPUTER EQUIPMENT -- 3.21%
10,050 Compaq Computer Corp.*..................... $ 484,514 $ 482,400
10,300 International Business Machines Corp. ..... 997,333 945,025
13,900 Silicon Graphics Inc.* .................... 427,800 382,250
----------- -----------
1,909,647 1,809,675
----------- -----------
CONSUMER CYCLICAL -- 0.55%
11,200 Circus Circus Entertainment................ 300,530 312,200
----------- -----------
ELECTRONIC COMPONENTS AND INSTRUMENTS -- 3.88%
8,050 Motorola, Inc. ............................ 610,473 458,850
31,500 Philips Electronics NV..................... 1,470,594 1,130,063
11,600 Texas Instruments.......................... 650,798 600,300
----------- -----------
2,731,865 2,189,213
----------- -----------
ENTERTAINMENT -- 4.10%
8,400 Capital Cities/ ABC Inc. .................. 986,862 1,036,350
13,500 Carnival Cruise Lines, Inc. ............... 309,801 329,063
25,000 Time Warner Inc. .......................... 933,451 946,875
----------- -----------
2,230,114 2,312,288
----------- -----------
FOOD PROCESSING -- 2.13%
8,550 Unilever NV - Cert......................... 1,158,006 1,203,412
----------- -----------
FINANCIAL SERVICES -- 2.84%
13,500 Key Corp. Ltd.............................. 466,132 489,375
17,700 Travelers Inc. ............................ 896,590 1,112,888
----------- -----------
1,362,722 1,602,263
----------- -----------
HEALTH CARE -- 1.58%
21,400 Abbott Laboratories Inc. .................. 879,190 893,450
----------- -----------
INSURANCE -- 1.52%
20,900 Allstate Insurance Corp. .................. 716,687 859,512
----------- -----------
MACHINERY & ENGINEERING -- 1.40%
7,500 American Standard Corp.*................... $ 213,767 $ 210,000
16,500 Deere & Co. ............................... 465,272 581,625
----------- -----------
679,039 791,625
----------- -----------
MEDICAL MANAGEMENT &
SERVICES -- 0.68%
18,600 Tenet Healthcare Corp. .................... 307,247 385,950
----------- -----------
MULTI-INDUSTRY -- 1.34%
10,100 ITT Corp.*................................. 518,236 535,300
9,200 ITT Industries*............................ 204,733 220,800
----------- -----------
722,969 756,100
----------- -----------
OIL & GAS -- 4.37%
12,400 Amoco Corp. ............................... 843,498 891,250
7,350 Atlantic Richfield Co. .................... 825,947 814,012
6,750 Mobil Corp. ............................... 675,804 756,000
----------- -----------
2,345,249 2,461,262
----------- -----------
PAPER PRODUCTS -- 1.61%
23,900 International Paper Co. ................... 972,184 905,212
----------- -----------
PHARMACEUTICALS -- 2.98%
6,600 American Home Products Corp. .............. 539,219 640,200
23,600 Ciba-Geigy AG - ADR+....................... 970,554 1,039,816
----------- -----------
1,509,773 1,680,016
----------- -----------
POLLUTION CONTROL -- 1.61%
30,400 WMX Technologies Inc. ..................... 866,914 908,200
----------- -----------
PUBLISHING & PRINTING -- 1.86%
400 Dun & Bradstreet Corp. .................... 25,148 25,900
53,100 News Corp. Ltd. -ADR+...................... 1,061,098 1,022,175
----------- -----------
1,086,246 1,048,075
----------- -----------
RETAIL -- 1.32%
5,400 Circuit City Stores........................ 167,725 149,175
21,600 Federated Department Stores*............... 604,426 594,000
----------- -----------
772,151 743,175
----------- -----------
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
THE HIRTLE CALLAGHAN TRUST
VALUE EQUITY FUND
Portfolio of Investments (continued) -- December 31, 1995
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS -- .62%
12,600 Tele Denmark
A/S - ADR................................ $ 321,596 $ 348,075
----------- -----------
TOBACCO -- 1.97%
12,250 Philip Morris Cos. Inc. .................. 984,463 1,108,625
----------- -----------
TOYS -- 0.53%
9,800 Mattel Inc. .............................. 285,187 301,350
----------- -----------
TRANSPORTATION -- 3.95%
10,800 Burlington Northern Co. .................. 790,749 842,400
34,500 Canadian Pacific Ltd. .................... 566,003 625,312
11,500 Union Pacific Corp. ...................... 771,618 759,000
----------- -----------
2,128,370 2,226,712
----------- -----------
TOTAL -- INSTITUTIONAL CAPITAL MANAGEMENT
CORP. ................................... 31,733,392 32,574,908
----------- -----------
TOTAL -- COMMON STOCKS.................... 51,541,662 54,430,058
----------- -----------
SHORT-TERM INVESTMENTS -- 2.65%
COWEN ASSET MANAGEMENT
$1,500,000 U.S. T-Bill 01/04/96.................. $ 1,499,403 $ 1,499,403
----------- -----------
TOTAL -- COWEN ASSET MANAGEMENT....... 1,499,403 1,499,403
----------- -----------
TOTAL INVESTMENTS -- 99.16%........... $53,041,065++ 55,929,461
===========
Cash and Other Assets in Excess of
Liabilities -- 0.84%................. 471,384
-----------
TOTAL NET ASSETS -- 100.00%........... $56,400,845
===========
</TABLE>
+ American Depository Receipts.
++ The cost for Federal income tax purposes is substantially the same.
* Non-income producing securities.
See accompanying notes to financial statements.
12
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION EQUITY FUND
Portfolio of Investments (unaudited) -- December 31, 1995
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS -- 90.82%
CLOVER CAPITAL MANAGEMENT, INC. -- 44.75%
ADVERTISING -- 1.85%
23,000 Advo, Inc............... $ 439,855 $ 598,000
----------- -----------
CHEMICALS -- 3.24%
4,000 Fuller (H B) Co......... 126,660 139,000
20,000 Hanna M A Co............ 555,150 560,000
9,500 Mallinckrodt Group,
Inc.................... 379,623 345,562
----------- -----------
1,061,433 1,044,562
----------- -----------
COMMERCIAL SERVICES -- 1.25%
40,000 Ideon Group, Inc........ 454,460 405,000
----------- -----------
COMPUTER SOFTWARE -- 2.77%
40,000 Marcam Corp.*........... 445,000 610,000
10,000 Sungard Data
System, Inc.*.......... 283,450 285,000
----------- -----------
728,450 895,000
----------- -----------
CONSUMER CYCLICAL -- 1.49%
20,000 Designs, Inc.*.......... 160,500 140,000
30,000 Pier 1 Imports, Inc..... 286,963 341,250
----------- -----------
447,463 481,250
----------- -----------
CONSUMER DURABLES -- 0.93%
60,000 Service Merchandise
Co.*................... 461,460 300,000
----------- -----------
ELECTRONIC COMPONENT -- 2.03%
27,000 Amphenol Corp. Cl A*.... 556,389 654,750
----------- -----------
ELECTRICAL AND ELECTRONICS -- 1.01%
19,000 Augat, Inc.............. 309,700 325,375
----------- -----------
ENTERTAINMENT -- 4.10%
21,000 G Tech Holdings Corp.*.. 604,047 546,000
20,000 King World
Productions, Inc.*..... 786,021 777,500
----------- -----------
1,390,068 1,323,500
----------- -----------
ENVIRONMENTAL -- 2.08%
40,000 Wheelabrator
Technologies, Inc.*.... 582,216 670,000
----------- -----------
FOOD - PROCESSING -- 2.89%
15,000 Interstate Bakeries,
Corp................... 285,900 335,625
150,000 United Biscuits
Holdings - ADR+........ 669,000 597,000
----------- -----------
954,900 932,625
----------- -----------
HEALTH CARE -- 2.36%
42,000 Caremark
International, Inc. ... $ 878,083 $ 761,250
----------- -----------
HOSPITAL MANAGEMENT & SERVICES -- 3.90%
32,000 Horizon/CMS Healthcare
Corp................... 732,045 808,000
12,000 Salick Healthcare,
Inc.*.................. 438,000 450,000
----------- -----------
1,170,045 1,258,000
----------- -----------
MANUFACTURING HOUSING -- 0.74%
25,000 Stimsonite Corp.*....... 229,375 237,500
----------- -----------
PUBLISHING & PRINTING -- 2.02%
20,000 American Greetings Corp.
Cl A................... 603,511 552,500
13,500 Steck-Vaughn Publishing
Corp.*................. 92,333 99,563
----------- -----------
695,844 652,063
----------- -----------
REAL ESTATE INVESTMENT TRUST --
4.27%
20,000 Manufactured Home
Communities, Inc. ..... 331,501 350,000
8,500 Meditrust Corp. ........ 287,476 296,438
7,500 Public Storage
Management, Inc. ...... 229,483 227,812
21,000 ROC Communities, Inc. .. 478,800 504,000
----------- -----------
1,327,260 1,378,250
----------- -----------
RETAIL -- 2.47%
50,000 Cash America
Investments, Inc. ..... 351,925 275,000
17,000 Melville Corp. ......... 589,208 522,750
----------- -----------
941,133 797,750
----------- -----------
STORAGE -- 0.98%
12,000 Sovran Self Storage,
Inc. .................. 287,845 316,500
----------- -----------
TELECOMMUNICATIONS -- 1.29%
25,000 California Microwave,
Inc.*.................. 699,938 415,625
----------- -----------
TRANSPORTATION - RAIL -- 1.63%
35,000 Canadian National
Railway Co.*........... 527,100 525,000
----------- -----------
UTILITIES - ELECTRICAL -- 1.45%
20,000 Sierra Pacific
Resources.............. 438,361 467,500
----------- -----------
TOTAL -- CLOVER CAPITAL
MANAGEMENT INC. ....... 14,581,378 14,439,500
----------- -----------
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION EQUITY FUND
Portfolio of Investments (continued) -- December 31, 1995
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
FRONTIER CAPITAL MANAGEMENT CO. -- 46.07%
ADVERTISING/COMMUNICATIONS -- 0.85%
10,100 Dimac Corp.*............................. $ 192,591 $ 275,225
----------- -----------
AEROSPACE/DEFENSE -- 2.12%
3,000 AAR Corp. ............................... 53,456 66,000
30,900 Banner Aerospace, Inc.*.................. 143,283 177,675
12,000 Be Aerospace, Inc.*...................... 100,500 127,500
2,200 Precision Castparts Corp. ............... 78,485 87,450
15,400 UNC, Inc.*............................... 100,729 92,400
3,000 Watkins-Johnson Co. ..................... 151,988 131,250
----------- -----------
628,441 682,275
----------- -----------
AUTO PARTS -- 0.87%
6,500 Strattec Security, Inc.*................. 97,705 117,000
8,100 Tower Automotive, Inc.*.................. 122,425 141,750
2,300 Wescast Industries, Inc.
Cl A.................................... 26,384 22,137
----------- -----------
246,514 280,887
----------- -----------
BASIC INDUSTRY -- 0.29%
2,000 York International Corp. ................ 87,913 94,000
----------- -----------
BUILDING MATERIALS &
COMPONENTS -- 0.99%
6,000 Drew Industries, Inc. ................... 81,035 84,000
15,100 Perini Corp.*............................ 181,366 124,575
2,100 Texas Industries, Inc. .................. 102,770 111,300
----------- -----------
365,171 319,875
----------- -----------
BROADCASTING -- 1.29%
4,600 Emmos Broadcasting Corp.*................ 124,067 142,600
3,900 Infinity Broadcasting Corp. Cl A*........ 135,334 145,275
4,600 TCA Cable TV, Inc. ...................... 139,250 127,075
----------- -----------
398,651 414,950
----------- -----------
CHEMICALS -- 0.68%
2,100 Georgia Gulf Corp. ...................... 74,307 64,575
13,700 Hexcel Corp.*............................ 146,057 154,125
----------- -----------
220,364 218,700
----------- -----------
COMMERCIAL SERVICES -- 0.46%
42,200 Childrens Comprehensive Services, Inc.*.. 143,065 147,700
----------- -----------
COMPUTER EQUIPMENT -- 2.72%
6,300 Conner Peripherals, Inc.*................ $ 112,990 $ 132,300
9,000 Datametrics Corp. ....................... 70,293 70,875
5,700 Hyperion Software Corp.*................. 143,912 121,125
5,400 Ikos Systems, Inc. ...................... 70,875 60,075
2,300 Network General Corp.*................... 77,395 76,762
12,900 State of The Art, Inc.*.................. 122,063 127,387
10,000 Technology Solutions Co.* 170,000 195,000
5,300 Western Digital Corp.*................... 94,070 94,738
----------- -----------
861,598 878,262
----------- -----------
COMPUTER SOFTWARE -- 1.68%
3,600 Computer Task Group...................... 56,437 71,100
8,800 Cornerstone Imaging, Inc.*............... 159,125 127,600
3,900 FTP Software, Inc. ...................... 105,112 113,100
3,300 Madge Networks N.V. ..................... 98,550 147,675
5,300 Marcam Corp.*............................ 66,013 80,825
----------- -----------
485,237 540,300
----------- -----------
ELECTRICAL AND ELECTRONICS -- 3.90%
9,600 Alpha Industries, Inc.*.................. 122,976 135,600
3,300 Analog Devises, Inc. .................... 107,481 116,737
2,500 Cirrus Logic, Inc.*...................... 138,125 49,375
20,600 Encore Wire Corp.*....................... 250,648 200,850
7,700 Rogers Corp.*............................ 179,793 167,475
18,600 Sheldahl, Inc.*.......................... 328,376 337,125
9,000 Trimble Navigation Ltd.*................. 154,867 167,625
6,100 Triquint Semiconduct, Inc.* 155,550 82,350
----------- -----------
1,437,816 1,257,137
----------- -----------
ELECTRONIC COMPONENTS AND INSTRUMENTS -- 2.33%
7,500 Actel Corp.*............................. 81,915 80,625
6,400 Allen Group, Inc. ....................... 176,359 143,200
5,100 Amphenol Corp. .......................... 131,449 123,675
4,900 Dovatron International, Inc.*............ 165,254 165,375
3,400 Maxim Integrated Products, Inc.*......... 124,181 130,900
6,000 VLSI Technology, Inc.*................... 143,753 108,750
----------- -----------
822,911 752,525
----------- -----------
ENERGY EQUIPMENT & SERVICES -- 0.72%
3,100 Microchip Technology, Inc.* 113,150 113,150
2,900 Murphy Oil, Corp. ....................... 119,466 120,350
----------- -----------
232,616 233,500
----------- -----------
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION EQUITY FUND
Portfolio of Investments (continued) -- December 31, 1995
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
FRONTIER CAPITAL MANAGEMENT CO. (CONTINUED)
ENGINEERING AND CONSTRUCTION -- 1.45%
21,220 Insituform Technologies CI A*.............. $ 274,947 $ 246,682
5,800 Jacobs Engineering Group, Inc.*............ 130,123 145,000
4,300 J Ray McDermott SA*........................ 94,763 76,862
----------- -----------
499,833 468,544
----------- -----------
FINANCIAL SERVICES -- 0.49%
6,000 Long Island Bancorp........................ 152,825 158,250
----------- -----------
HOUSEHOLD PRODUCTS -- 0.30%
4,300 Libbey, Inc. .............................. 100,663 96,750
----------- -----------
INSURANCE -- 2.24%
3,600 Allied Group, Inc. ........................ 118,530 129,600
2,800 Conseco, Inc. ............................. 143,917 175,350
8,200 John Alden Financial Corp. ................ 174,452 171,175
2,400 Mid Ocean Ltd.............................. 87,582 89,100
4,900 Nymagic, Inc. ............................. 86,325 83,300
3,600 Paul Revere Corp. ......................... 74,016 74,700
----------- -----------
684,822 723,225
----------- -----------
LEISURE AND TOURISM -- 0.25%
15,900 Topps Company, Inc.*....................... 105,338 81,488
----------- -----------
MACHINERY & ENGINEERING -- 0.37%
4,000 Applied Power, Inc. ....................... 135,737 120,000
----------- -----------
MANUFACTURING -- 0.04%
900 Safety Components International, Inc. ..... 17,100 14,175
----------- -----------
MEDICAL SUPPLIES -- 0.72%
6,400 Maxxim Medical, Inc.*...................... 101,111 107,200
4,400 Spacelabs Medical, Inc.*................... 113,111 126,500
----------- -----------
214,222 233,700
----------- -----------
MEDICAL BIOTECHNOLOGY -- 0.21%
2,900 Protein Design Labs, Inc.*................. 53,825 67,063
----------- -----------
HOSPITAL MANAGEMENT &
SERVICES -- 0.32%
4,700 United Wisconsin Services, Inc. ........... 102,281 103,400
----------- -----------
METAL FABRICATE/HARDWARE -- 0.16%
6,000 Easco, Inc. ............................... 75,000 51,750
----------- -----------
OIL & GAS -- 4.52%
2,800 Anadarko Petroleum Corp. .................. $ 136,902 $ 151,550
11,900 Aquila Gas Pipeline Corp. ................. 122,764 153,212
3,400 Coflexip................................... 45,254 64,175
5,000 Enron Global Power & Pipeline L.L.C. ...... 117,800 124,375
13,300 Falcon Drilling, Inc.*..................... 141,337 199,500
3,300 Louisiana Land & Exploration*.............. 129,606 141,488
6,100 Oryx Energy Co. ........................... 83,980 81,587
3,800 Pogo Producing Co. ........................ 94,297 107,350
2,100 Production Operators Corp. ................ 64,487 69,300
7,000 Ultramar Corp. ............................ 160,806 180,250
4,800 United Meridian Corp.*..................... 85,955 83,400
3,500 Weatherford International, Inc.*........... 98,152 101,063
----------- -----------
1,281,340 1,457,250
----------- -----------
PACKAGING/CONTAINER -- 0.98%
3,400 Ball Corp. ................................ 95,013 93,500
16,600 U.S. Can Corp.*............................ 216,555 224,100
----------- -----------
311,568 317,600
----------- -----------
PHARMACEUTICALS -- 0.93%
13,300 Alliance Pharmaceutical Corp.*............. 132,841 181,213
16,000 Capstone Pharmacy Service, Inc.*........... 101,101 120,000
----------- -----------
233,942 301,213
----------- -----------
PUBLISHING & PRINT -- 1.70%
2,100 Devon Group, Inc.*......................... 87,068 61,031
10,400 International Imaging Materials, Inc.*..... 244,403 262,600
12,900 Valassis Communications, Inc.*............. 199,908 225,750
----------- -----------
531,379 549,381
----------- -----------
REAL ESTATE INVESTMENT TRUST -- 0.97%
4,100 Equity Residential Properties, Inc. ....... 122,699 125,563
6,600 Highwoods Properties, Inc. ................ 176,381 186,450
----------- -----------
299,080 312,013
----------- -----------
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
THE HIRTLE CALLAGHAN TRUST
SMALL CAPITALIZATION EQUITY FUND
Portfolio of Investments (continued) -- December 31, 1995
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
FRONTIER CAPITAL MANAGEMENT CO. (CONTINUED)
RETAIL -- 0.36%
5,000 Moovies, Inc.*........................ $ 62,500 $ 67,500
2,200 Officemax, Inc. ...................... 54,900 49,225
----------- -----------
117,400 116,725
----------- -----------
RESTAURANT -- 0.14%
5,300 Bugaboo Creek Steakhouse, Inc.*....... 46,073 43,725
----------- -----------
STEEL -- 1.08%
4,000 Carpenter Technology Corp. ........... 161,949 164,500
11,000 Chaparral Steel Co. .................. 116,770 184,250
----------- -----------
278,719 348,750
----------- -----------
TELECOMMUNICATION EQUIPMENT -- 2.47%
12,400 Centiram Communication Corp.*......... 231,524 244,900
7,300 Comarco, Inc.*........................ 82,988 105,850
2,800 Davox Corp.*.......................... 29,723 33,250
5,700 Echostar Communications Corp. A....... 92,911 138,225
4,800 Intervoice, Inc.*..................... 88,413 91,200
4,500 Summa Four, Inc.*..................... 58,171 60,188
9,000 Symmetricon, Inc.*.................... 146,948 123,750
----------- -----------
730,678 797,363
----------- -----------
TELECOMMUNICATIONS -- 2.67%
12,500 Arch Communications Group*............ 333,117 300,000
17,600 Equalnet Holding Corp.*............... 144,100 127,600
5,600 Metrocall, Inc.*...................... 124,678 107,100
6,300 Natural Microsystems Corp.*........... 166,116 192,150
6,000 U.S. Order, Inc.*..................... 120,900 134,250
----------- -----------
888,911 861,100
----------- -----------
TEXTILES AND APPAREL -- 0.89%
3,000 Jones Apparel Group, Inc. ............ 108,392 118,125
17,400 Sport-Haley, Inc.*.................... 174,575 168,563
----------- -----------
282,967 286,688
----------- -----------
TOYS -- 0.47%
13,000 Galoob (Lewis) Toys, Inc.*............ $ 133,087 $ 152,750
----------- -----------
TRANSPORTATION -- 2.54%
13,300 America West Airlines CI. B*.......... 195,189 226,100
11,600 OMI Corp.*............................ 93,871 75,400
3,000 Overseas Shipholding Group............ 65,631 57,000
7,200 Teekay Shipping Corp. ................ 177,455 170,100
7,700 World Airways Inc.*................... 92,481 86,625
20,400 Worldcorp, Inc.*...................... 262,140 204,000
----------- -----------
886,767 819,225
----------- -----------
UTILITIES -- 0.44%
7,200 California Energy Company, Inc.*...... 147,132 140,400
----------- -----------
WHOLESALE SPECIAL LINE -- 0.46%
7,200 Sodak Gaming, Inc.*................... 143,558 148,500
----------- -----------
TOTAL -- FRONTIER CAPITAL MANAGEMENT
CO. ................................. 14,577,135 14,866,364
----------- -----------
TOTAL -- COMMON STOCKS................ 29,158,513 29,305,864
----------- -----------
CORPORATE BOND -- 1.63%
CLOVER CAPITAL MANAGEMENT, INC. -- 1.63%
$500,000 Meditrust Corp. 7.50%, 03/01/01....... 510,758 527,500
----------- -----------
TOTAL -- CORPORATE BONDS.............. 510,758 527,500
----------- -----------
TOTAL
INVESTMENTS -- 92.45%................ $29,669,271++ 29,833,364
===========
Cash and Other Assets in Excess of
Liabilities -- 7.55%................. 2,434,900
-----------
TOTAL NET ASSETS -- 100.00%........... $32,268,264
===========
</TABLE>
+ American Depository Receipts.
++ The cost of securities for Federal income tax purposes is the same.
* Non-income producing security.
See accompanying notes to financial statements.
16
<PAGE>
THE HIRTLE CALLAGHAN TRUST
LIMITED DURATION MUNICIPAL BOND FUND
Portfolio of Investments (unaudited) -- December 31, 1995
<TABLE>
<CAPTION>
CREDIT PRINCIPAL
RATINGS* AMOUNT COST VALUE
-------- --------- ---- -----
<C> <C> <S> <C> <C> <C>
MUNICIPAL OBLIGATIONS -- 98.27%
ALABAMA -- 1.08%
NR/NR $ 180,000 Pell City Alabama Industrial
Development, Shelby
Steel Fabricators,
7.70%, 09/01/01
(LOC - Southtrust Bank)+... $ 183,593 $ 183,676
----------- -----------
ALASKA -- 7.07%
AA 1,205,000 Anchorage Alaska,
Certificates of
Participation,
5.10%, 04/01/96
(Asset Guaranty)........... 1,207,791 1,207,952
----------- -----------
ARIZONA -- 2.11%
NR 350,000 La Paz County Industrial
Development, Morgan Trailer
MFG Co., 8.00%, 12/01/06
(Pre-Refunded
12/01/96 @ 100)+........... 361,757 360,696
----------- -----------
COLORADO -- .41%
Aa/AA+ 70,000 Colorado Housing Finance
Authority, Series A.,
5.00%, 11/01/96............ 70,555 70,661
----------- -----------
CONNECTICUT -- 4.60%
A2/NR 145,000 Connecticut State
Development Authority,
Health Care Project,
5.50%, 09/01/97
(Surety Bond -
Aetna/Cigna etc.).......... 146,304 146,269
AAA 605,000 Connecticut State Resource
Recovery Authority, Greater
Bridgeport System,
6.75%, 11/15/99............ 631,783 639,787
----------- -----------
778,087 786,056
----------- -----------
DELAWARE -- 4.10%
NR 600,000 Wilmington Delaware Hospital
Revenue, Osteopathic
Hospital Series A,
10.00%, 10/01/03
(Pre-Refunded
10/01/98 @ 102)............ 693,964 700,500
----------- -----------
GEORGIA -- 4.24%
Aa3/AA- 200,000 Cobb County Housing
Authority, Multi-Family
Housing Revenue,
7.50%, 01/01/97 (LOC - Sun
Trust)..................... 204,168 204,952
AAA 500,000 Fulton County Housing
Authority, Single
Family Revenue,
6.20%, 03/01/13
(GNMA Collateral)+......... 503,721 519,375
----------- -----------
707,889 724,327
----------- -----------
IDAHO -- 6.30%
Aa/AA 1,065,000 Idaho Housing Agency, Multi-
Family Housing,
6.00%, 01/01/07............ 1,067,774 1,075,362
----------- -----------
ILLINOIS -- 11.82%
NR 545,000 City of Fairfield Economic
Development Revenue, Waynes
County Center Project,
6.00%, 12/15/05............ 553,742 560,669
A1/AA- 100,000 Illinois State, General
Obligation Bonds,
4.75%, 08/01/99............ 99,700 100,506
AAA/AA- 225,000 Illinois State, General
Obligation Bonds
8.75%, 03/01/05 (Pre-
Refunded 03/01/96 @ 101)... 230,422 229,023
Aaa/AAA 500,000 St. Clair County Public
Building Revenue, General
Obligation Bonds,
8.00%, 12/01/05 (MBIA)..... 518,544 519,690
A/NR 580,000 Woodridge Mortgage Revenue,
Series 1992-1,
7.25%, 12/01/10............ 609,429 609,725
----------- -----------
2,011,837 2,019,613
----------- -----------
INDIANA -- 2.05%
A1/NR 350,000 Clarksville Indiana Economic
Development Revenue,
5.10%, 12/01/25 (LOC -
Comerica)
(Mandatory put
12/01/00 @ 100)............ 350,000 350,875
----------- -----------
LOUISIANA -- 8.11%
NR/AAA 435,000 Jefferson Parish Home
Mortgage Authority, Series
A, 4.85%, 12/01/01
(FNMA/GNMA Collateral)+.... 435,108 435,544
NR/AA 940,000 Louisiana Public Facility
Authority, Multi-Family
Revenue, 6.00%, 07/01/07
(Mandatory put 07/01/97 @
100) (Insured by Conn.
General Life Insurance
Co.)....................... 950,002 948,864
----------- -----------
1,385,110 1,384,408
----------- -----------
</TABLE>
See accompanying notes to financial statements.
17
<PAGE>
THE HIRTLE CALLAGHAN TRUST
LIMITED DURATION MUNICIPAL BOND FUND
Portfolio of Investments (continued) -- December 31, 1995
<TABLE>
<CAPTION>
CREDIT PRINCIPAL
RATINGS* AMOUNT COST VALUE
-------- --------- ---- -----
<C> <C> <S> <C> <C>
MUNICIPAL OBLIGATIONS (CONTINUED)
MARYLAND -- 2.19%
NR/A+ 375,000 Montgomery County Housing
Authority, Multi-Family Revenue,
6.00%, 02/01/07
(Mandatory put 02/01/97 @ 100)
(Insured by New England
Mutual)......................... $ 375,679 $ 375,259
----------- -----------
MASSACHUSETTS -- 3.04%
Aaa/AAA 400,000 Boston Mass Water & Sewer, Series
A, 7.875%, 11/01/13 (FGIC)
(Cross over refunding 11/01/96
@ 102)......................... 419,090 419,156
Baa1/NR 100,000 Lowell Mass, General Obligation
Bonds, 6.80%, 02/15/96.......... 100,123 100,230
----------- -----------
519,213 519,386
----------- -----------
MICHIGAN -- 3.46%
A/A 550,000 Michigan State Housing
Development Authority, Home
Improvement Series B,
7.65%, 12/01/12+................ 584,940 591,937
----------- -----------
NEBRASKA -- 3.23%
AAA 550,000 Nebraska Investment Financial
Authority, Multi-Family Mortgage
Revenue, 4.75%, 06/01/05
(Mandatory put 06/01/97 @ 100)
(LOC Occidental Federal
Savings)........................ 551,707 550,237
----------- -----------
NEW MEXICO -- 1.91%
Aaa/AAA 1,000,000 Albuquerque New Mexico Mortgage
Obligation, Cl. B - 2, 0%,
05/15/11 (FGIC)................. 327,309 327,500
----------- -----------
NEW YORK -- 3.03%
Aa/AA 500,000 New York State Dormitory
Authority Revenue, Cornell
University, 6.875%, 07/01/06.... 516,699 517,080
----------- -----------
PENNSYLVANIA -- 17.77%
A/NR 500,000 Cumberland Valley School
District, Series A, 5.90%,
09/01/98........................ 504,719 505,265
NR/A 100,000 Dauphin County Industrial
Development Authority, Brubaker
Tool Corp., 7.10%, 12/01/02
(LOC - Marine Bank)+............ 102,162 102,220
Aa3/A+ 475,000 Delaware County Industrial
Development Authority, Series A,
8.10%, 12/01/13
(LOC - Bank of America)......... 493,852 497,315
NR 100,000 Montgomery County Industrial
Development, Meadowood Corp.,
5.00%, 12/01/96................. 100,000 100,070
Aa/AA 550,000 Pennsylvania Housing Finance
Authority, Single Family Mtg.
Series 27, 8.10%, 10/01/10+..... 572,702 576,125
A/A- 150,000 Pennsylvania State Certificates
of Participation, Revenue Bonds,
6.20%, 06/01/96................. 151,061 151,625
Aaa/AAA 500,000 Philadelphia Hospital & Higher
Education Authority, Moss
Rehabilitation Hospital Revenue,
6.90%, 07/01/00 (AMBAC)......... 527,050 551,875
Aaa/AAA 135,000 Philadelphia Pennsylvania
Airport, Revenue Bonds, 5.90%,
06/15/96 (MBIA)................. 135,818 136,185
NR/A 400,000 Scranton-Lackawanna Health &
Welfare Authority, St. Josephs
Hospital, 7.75%, 12/15/15
(LOC - PNC Bank)................ 416,400 414,532
----------- -----------
3,003,764 3,035,212
----------- -----------
TENNESSEE -- 4.71%
Aaa/NR 580,000 Hamilton County Industrial
Development Authority, Multi-
Family Housing Revenue, 6.25%,
10/01/08 (LOC - Gardian Savings
& Loan) (Mandatory put 10/01/97
@ 100).......................... 583,391 580,000
NR/A+ 220,000 Hendersonville Industrial
Development Authority,
Multi-Family Housing Revenue,
5.375%, 02/01/06 (Surety Bond
Continental Casualty) (Mandatory
put 02/01/98 @ 100)............. 222,260 222,361
----------- -----------
805,651 802,361
----------- -----------
TEXAS -- 1.45%
Aa/AA 250,000 Texas State, General Obligation
Bonds, 3.75%, 08/01/97.......... 247,650 248,437
----------- -----------
</TABLE>
See accompanying notes to financial statements.
18
<PAGE>
THE HIRTLE CALLAGHAN TRUST
LIMITED DURATION MUNICIPAL BOND FUND
Portfolio of Investments (continued) -- December 31, 1995
<TABLE>
<CAPTION>
CREDIT PRINCIPAL
RATINGS* AMOUNT COST VALUE
-------- --------- ---- -----
<C> <C> <S> <C> <C>
MUNICIPAL OBLIGATIONS
(CONTINUED)
WISCONSIN -- 2.66%
Aa/AA $ 445,000 Wisconsin Housing & Economic
Development, Authority Series
B, 6.625%, 09/01/20
(GEMIC Pool Insured)+........ $ 446,963 $ 453,900
----------- -----------
VIRGINIA -- 2.93%
NR 500,000 King George County Industrial
Development Authority, King
County Elementary School,
4.875%, 08/01/98............. 497,755 500,245
----------- -----------
TOTAL NOTES AND BONDS --
98.27%...................... 16,695,687 16,785,680
----------- -----------
SHORT-TERM INVESTMENTS --
0.04%
6,930 Provident Institutional
Funds........................ 6,930 6,930
----------- -----------
TOTAL INVESTMENTS - 98.31%.... $16,702,617++ 16,792,610
===========
Cash and Other Assets
in Excess of Liabilities --
1.69%....................... 288,721
-----------
TOTAL NET ASSETS -- 100.00%... $17,081,331
===========
</TABLE>
* See page 20 for Credit Ratings Summary.
+ Subject to Alternative Minimum Tax.
++ The cost of securities for Federal income tax purposes is substantially the
same.
See accompanying notes to financial statements.
19
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Portfolio of Investments (unaudited) (continued) -- December 31, 1995
CREDIT RATINGS (unaudited).
<TABLE>
<CAPTION>
MOODY'S STANDARD & POOR'S
------- -----------------
<C> <C> <S>
Aaa AAA Instrument judged to be of the highest quality
and carrying the smallest amount of investment
risk.
Aa AA Instrument judged to be of high quality by all
standards.
A A Instrument judged to be adequate by all
standards.
Baa BBB Instrument judged to be of moderate quality by
all standards.
Ba-B BB-B Instrument judged to have speculative elements,
and generally lack desirable characteristics.
Caa-C CCC-C Instrument judged to be predominately
speculative with respect to pay interest and
repay principal in accordance with terms of
obligation.
NR NR Not Rated. In the opinion of the Investment
Adviser, instrument judged to be of comparable
investment quality to rated securities which
may be purchased by the Fund.
</TABLE>
For items possessing the strongest investment attributes of their category,
Moody's gives that letter rating followed by a number. The Standard & Poor's
ratings may be modified by the addition of a plus or minus sign to show
relative standing within the major rating categories.
Abbreviations used in this statement:
AMBAC.. American Municipal Bond Assurance Corporation
FGIC... Financial Guaranty Insurance Corporation
MBIA... Municipal Bond Insurance Association
LOC.... Letter of Credit
GNMA... Government National Mortgage Association
FNMA... Federal National Mortgage Association
GEMIC.. General Electric Mortgage Insurance Corporation
20
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Statements of Assets and Liabilities (unaudited)
December 31, 1995
<TABLE>
<CAPTION>
MUNICIPAL
GROWTH INTERNATIONAL VALUE SMALL CAP BOND
------ ------------- ----- --------- ---------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at value (cost
$55,199,660; $48,180,274;
$51,541,662; $29,669,271;
$16,695,687,
respectively)............ $57,833,514 $50,266,673 $54,430,058 $29,833,364 $16,785,680
Short-Term Investments
(cost $0; $0; $1,499,403;
$0; $6,930,
respectively)............ 0 0 1,499,403 0 6,930
Cash...................... 3,405,193 3,361,082 1,196,878 2,905,003 92,919
Foreign Cash (cost $0;
$416,981; $0; $0; $0,
respectively)............ 0 419,177 0 0 0
Dividends and interest
receivable............... 25,041 62,582 140,536 43,901 170,054
Receivable for investments
sold..................... 1,817,002 386,642 691,064 236,925 0
Receivable from Adviser... 453 3,967 8,911 19,864 20,707
Receivable from brokers
for forward contract
gain..................... 0 604,742 0 0 0
Withholding tax reclaim... 0 4,985 0 0 0
Unrealized appreciation on
forward currency
contracts................ 0 386,239 0 0 0
Unamortized organizational
expenses (Note 2e)....... 28,283 28,451 28,569 28,787 29,360
----------- ----------- ----------- ----------- -----------
Total Assets............ 63,109,486 55,524,540 57,995,419 33,067,844 17,105,650
----------- ----------- ----------- ----------- -----------
LIABILITIES
Payable for securities
purchased................ 937,461 1,184,485 1,545,283 752,527 0
Payable to brokers for
forward contract loss.... 0 59,515 0 0 0
Organizational expense
payable.................. 2,457 1,196 2,171 0 1,380
Advisory fee payable (Note
3)....................... 13,738 19,863 12,128 13,027 5,506
Administrative services
fee payable (Note 3)..... 14,587 4,338 10,961 2,744 1,703
Transfer agent fee payable
(Note 3)................. 1,000 0 700 0 274
Other accrued expenses.... 23,784 30,450 23,331 31,282 15,456
----------- ----------- ----------- ----------- -----------
Total Liabilities....... 993,027 1,299,847 1,594,574 799,580 24,319
----------- ----------- ----------- ----------- -----------
NET ASSETS................. $62,116,459 $54,224,693 $56,400,845 $32,268,264 $17,081,331
=========== =========== =========== =========== ===========
Net Assets Consist of
Capital stock............. 6,073 5,127 5,192 3,245 1,690
Additional paid-in
capital.................. 61,222,804 51,606,463 52,978,073 32,393,365 16,985,614
Accumulated undistributed
net investment
income/(loss) on
investments.............. 643 (524,218) 143 (48,369) 0
Accumulated undistributed
realized gain/(loss) on
investments and foreign
currency................. (1,746,915) 664,692 529,041 (244,070) 4,034
Net unrealized
appreciation/depreciation
on investments and
foreign currency
translations............. 2,633,854 2,472,629 2,888,396 164,093 89,993
----------- ----------- ----------- ----------- -----------
NET ASSETS................. $62,116,459 $54,224,693 $56,400,845 $32,268,264 $17,081,331
=========== =========== =========== =========== ===========
SHARES OF BENEFICIAL
INTEREST
Shares of beneficial
interest outstanding..... 6,072,699 5,126,930 5,191,827 3,245,284 1,689,764
=========== =========== =========== =========== ===========
Net asset value per share
outstanding.............. $10.23 $10.58 $10.86 $9.94 $10.11
====== ====== ====== ===== ======
</TABLE>
See accompanying notes to financial statements.
21
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Statements of Operations (unaudited)
<TABLE>
<CAPTION>
GROWTH INTERNATIONAL VALUE SMALL CAP MUNICIPAL BOND
AUGUST 8, 1995 AUGUST 17, 1995 AUGUST 25, 1995 SEPTEMBER 5, 1995 OCTOBER 10, 1995
(COMMENCEMENT (COMMENCEMENT (COMMENCEMENT (COMMENCEMENT (COMMENCEMENT
OF OPERATIONS) OF OPERATIONS) OF OPERATIONS) OF OPERATIONS) OF OPERATIONS)
THROUGH THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1995 1995 1995 1995
-------------- --------------- --------------- ----------------- ----------------
<S> <C> <C> <C> <C> <C>
Investment Income
Interest............... $ 48,219 $ 12,247 $6,274 $ 48,374 $150,740
Dividends (net of
withholding tax of
$630, $34,358, $2,514,
$0, $0,
respectively)......... 151,321 242,998 480,022 105,157 0
----------- ---------- ---------- --------- --------
199,540 255,245 486,296 153,531 150,740
----------- ---------- ---------- --------- --------
Expenses:
Advisory (Note 3)...... 78,197 72,449 55,174 44,847 7,006
Fund Accounting (Note
3).................... 14,055 22,642 12,265 11,977 8,279
Legal.................. 4,415 3,640 4,415 3,532 2,370
Administrative services
(Note 3).............. 22,341 16,100 15,764 8,969 2,803
Reports to
shareholders.......... 2,650 2,175 2,650 2,120 1,425
Audit.................. 4,495 3,687 1,936 3,354 2,417
Registration........... 12,476 10,288 12,476 9,981 6,698
Trustee................ 1,000 1,000 1,000 1,000 1,000
Transfer agent fees and
expenses (Note 3)..... 956 624 700 451 274
Amortization of
organizational
expenses.............. 2,457 2,289 2,171 1,952 1,380
Miscellaneous.......... 3,750 3,500 3,615 3,885 2,610
----------- ---------- ---------- --------- --------
Total expenses before
waivers............... 146,792 138,394 112,166 92,068 36,262
Less expenses
waived/reimbursed by
Advisor, Administrator
and Transfer Agent.... (6,038) (7,992) (12,852) (22,106) (21,408)
----------- ---------- ---------- --------- --------
Net expenses........... 140,754 130,402 99,314 69,962 14,854
----------- ---------- ---------- --------- --------
Net investment income... 58,786 124,843 386,982 83,569 135,886
----------- ---------- ---------- --------- --------
Realized gain on
investments............ (1,746,915) 95,017 654,790 (244,070) 4,034
Net realized gain/(loss)
on foreign currency
transactions and assets
and liabilities
denominated in foreign
currencies............. 0 600,984 0 0 0
Change in unrealized
appreciation of
investments............ 2,633,854 2,086,399 2,888,396 164,093 89,993
Net unrealized gain on
foreign currency
translations........... 0 386,230 0 0 0
----------- ---------- ---------- --------- --------
Net realized/unrealized
gain/(loss) on
investments and foreign
currency translation... 886,939 3,168,630 3,543,186 (79,977) 94,027
----------- ---------- ---------- --------- --------
Net increase in net
assets resulting from
operations............. $ 945,725 $3,293,473 $3,930,168 $ 3,592 $229,913
=========== ========== ========== ========= ========
</TABLE>
See accompanying notes to financial statements.
22
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Statements of Changes in Net Assets (unaudited)
<TABLE>
<CAPTION>
GROWTH INTERNATIONAL VALUE SMALL CAP MUNICIPAL BOND
AUGUST 8, 1995 AUGUST 17, 1995 AUGUST 25, 1995 SEPTEMBER 5, 1995 OCTOBER 10, 1995
(COMMENCEMENT (COMMENCEMENT (COMMENCEMENT (COMMENCEMENT (COMMENCEMENT
OF OPERATIONS) OF OPERATIONS) OF OPERATIONS) OF OPERATIONS) OF OPERATIONS)
THROUGH THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1995 1995 1995 1995
-------------- --------------- --------------- ----------------- ----------------
<S> <C> <C> <C> <C> <C>
Operations:
Net investment income....... $ 58,786 $ 124,843 $ 386,982 $ 83,569 $ 135,886
Net realized gain/(loss) on
investments................ (1,746,915) 696,001 654,790 (244,070) 4,034
Change in unrealized
appreciation/(depreciation)
of investments............. 2,633,854 2,472,629 2,888,396 164,093 89,993
----------- ----------- ----------- ----------- -----------
New increase in net assets
resulting from operations... 945,725 3,293,473 3,930,168 3,592 229,913
----------- ----------- ----------- ----------- -----------
Distributions to shareholders
from capital gains:......... 0 (31,309) (125,749) 0 0
Distributions to shareholders
from net investment income.. (58,143) (649,061) (386,839) (131,938) (135,886)
----------- ----------- ----------- ----------- -----------
Decrease in net assets
resulting from
distributions to
shareholders............... (58,143) (680,370) (512,588) (131,938) (135,886)
----------- ----------- ----------- ----------- -----------
Capital Share Transactions:
Proceeds from sales of
shares:.................... 70,277,908 52,286,176 55,461,950 35,551,737 17,987,167
Net asset value of shares
issued to shareholders in
reinvestment of dividends
and distributions:......... 56,154 657,172 502,652 124,023 133,869
Net asset value of shares
redeemed:.................. (9,125,185) (1,351,758) (3,001,337) (3,299,150) (1,153,732)
----------- ----------- ----------- ----------- -----------
Net increase in net assets
from capital share
transactions............. 61,208,877 51,591,590 52,963,265 32,376,610 16,967,304
----------- ----------- ----------- ----------- -----------
Total increase in net
assets...................... 62,096,459 54,204,693 56,380,845 32,248,264 17,061,331
Net Assets:
Beginning of period......... 20,000 20,000 20,000 20,000 20,000
----------- ----------- ----------- ----------- -----------
End of period............... $62,116,459 $54,224,693 $56,400,845 $32,268,264 $17,081,331
=========== =========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
23
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (unaudited) -- December 31, 1995
1. DESCRIPTION. The Hirtle Callaghan Trust (the "Trust") was incorporated in
Delaware on December 15, 1994. The Trust currently comprises five portfolios,
Growth Equity Portfolio ("Growth") (commencement date August 8, 1995),
International Equity Portfolio ("International") (commencement date August 17,
1995), Value Equity Portfolio ("Value") (commencement date August 25, 1995),
Small Capitalization Equity Portfolio ("Small Cap") (commencement date
September 5, 1995), Limited Duration Municipal Bond Portfolio ("Municipal
Bond") (commencement date October 10, 1995) (the "Funds"). The Trust is
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as an open-end management investment company. Each Portfolio operates
as a diversified fund.
2. SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of the
significant accounting policies followed by the Funds:
A. Portfolio Valuation. The net asset value per share of the Portfolios
is determined once on each Business Day as of the close of the New York
Stock Exchange, which is normally 4 p.m. Eastern Time. Each Portfolio's net
asset value per share is calculated by adding the value of all securities
and other assets of the Portfolio, subtracting its liabilities and dividing
the result by the number of its outstanding shares. Those assets that are
traded on an exchange or in the over-the-counter market are valued based
upon market quotations. Short-term obligations with maturities of 60 days
or less are valued at amortized cost, which constitutes fair value as
determined by the Trust's Board of Trustees. Other assets for which market
quotations are not readily available are valued at their fair value as
determined in good faith by the Trust's Trustees. With the approval of the
Board, any of the Portfolios may use a pricing service, bank or broker-
dealer experienced in such matters to value the Portfolio's securities.
B. Securities Transactions and Investment Income. Securities transactions
are recorded on a trade date basis. Realized gains and losses from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including
amortization of premium and accretion of discount on investments, is
accrued daily as earned.
C. Dividend and Capital Gain Distributions to Shareholders. The Limited
Duration Municipal Bond Portfolio declares dividends from net investment
income daily and distributes them on a monthly basis. The Growth Portfolio,
Value Portfolio and Small Cap Portfolio declare and distribute dividends
from net investment income on a quarterly basis. The International
Portfolio will declare and distribute dividends from net investment income
on a semi-annual basis. Net realized capital gains, if any, will be
distributed at least annually for each portfolio. Distributions to
shareholders are recorded on the ex-dividend date.
D. Federal Income Taxes. It is the policy of each of the Funds to qualify
as a "regulated investment company" under Subchapter M of the Internal
Revenue Code of 1986, as amended. By so qualifying, the Funds will not be
subject to Federal income taxes to the extent that they distribute all of
their taxable and tax-exempt income for the fiscal year. The Funds also
intend to meet the distribution requirements to avoid the payment of an
excise tax. Accordingly, no provision for taxes is recorded.
E. Organizational Expenses. Costs incurred in connection with the
organization and initial registration of the Funds have been deferred and
are being amortized on a straightline basis over sixty months beginning
24
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (continued) -- December 31, 1995
with each Fund's commencement of operations. In the event any of the
initial shares of the Funds are redeemed during the amortization period,
the redemption proceeds will be reduced by a pro rata portion of any
unamortized organization expenses in the proportion as the number of shares
being redeemed bears to the number of initial shares outstanding at the
time of redemption.
F. Determination of Net Asset Value and Calculation of Expenses. Expenses
directly attributable to a Fund are charged to that Fund. Other expenses
are allocated proportionately among each Fund in relation to the net assets
of each Fund or on another reasonable basis.
G. Foreign Exchange Transactions. The books and records of the Fund are
maintained in U.S. dollars, non-U.S. denominated amounts are translated
into U.S. dollars as follows, with the resultant exchange gains and losses
recorded in the Statement of Operations:
(i) market value of investment securities and other assets and
liabilities at the exchange rate on the valuation date,
(ii) purchases and sales of investment securities, income and
expenses at the exchange rate prevailing on the respective date of such
transactions.
H. Forward Foreign Exchange Contracts. A forward foreign exchange
contract is a commitment to sell a foreign currency at a future date at a
negotiated exchange rate. The Funds bear the market risk which arises from
possible changes in foreign exchange values. Risks may arise from the
potential inability of counterparties to meet the terms of their contracts
and from unanticipated movements in the value of the foreign currency
relative to the U.S. dollar. The gain or loss from the difference between
the cost of original contracts and the amount realized upon the closing of
such contracts is included in net realized gain on foreign exchange.
3. INVESTMENT ADVISORY AND ADMINISTRATION CONTRACTS. The Trust has entered
into investment advisory contracts ("Portfolio Management Contracts") on
behalf of each of the Portfolios with one or more Investment Managers. Each
Investment Manager is responsible for providing a continuous program of
investment management to, and placing all orders for, the purchase and sale of
securities and other instruments on behalf of the respective Portfolios they
serve. Each Investment Manager is to be paid a fee based on average net
assets, calculated and accrued daily and paid monthly at annual rates of 0.30%
for the Growth Portfolio, 0.40% for the International Portfolio, 0.30% for the
Value Portfolio, 0.45% for the Small Cap Portfolio, and 0.20% for the Limited
Duration Municipal Bond Portfolio. For the period ended December 31, 1995, the
Investment Managers earned fees of $67,026, $64,399, $47,292, $40,362, and
$5,605, for the Growth, International, Value, Small Cap, and Municipal Bond
Portfolios, respectively.
Pursuant to a consulting agreement between the Trust and Hirtle Callaghan &
Company, Inc. ("HCCI") ("HCCI Consulting Agreement"), HCCI is to be paid a fee
calculated and accrued daily and paid monthly at annual rates of 0.05% of
average net assets per Fund. HCCI will make its officers available to serve as
officers and/or Trustees of the Trust, provide office space sufficient for the
Trust's principal office, and monitor the performance of various investment
25
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (continued) -- December 31, 1995
management organizations, including the Investment Managers. HCCI does not
have investment discretion. For the period ended December 31, 1995, HCCI
earned fees of $11,171, $8,050, $7,882, $4,485, and $1,401, for the Growth,
International, Value, Small Cap, and Municipal Bond Portfolios, respectively.
Furman Selz LLC ("Furman Selz") provides the Funds with administrative, fund
accounting, dividend and capital gain distribution disbursing and transfer
agency services pursuant to the administration agreement (the "Administration
Agreement"). The services under the Administration Agreement are subject to
the supervision of the Trust's Board of Trustees and officers and include day-
to-day administration of matters related to the corporate existence of the
Trust, maintenance of its records, preparation of reports, supervision of the
Funds' arrangement with their custodian and assistance in the preparation of
the Trust's Registration Statement under Federal and state laws. Pursuant to
the Administration Agreement, the Funds pay Furman Selz a monthly fee for its
services which, on an annualized basis, will not exceed .10% of the average
daily net assets of the Funds and is accrued daily. For Administrative
Services provided, Furman Selz was entitled to fees of $22,341, $16,100,
$15,764, $8,969 and $2,803 for the Growth, International, Value, Small Cap and
Municipal Bond Portfolios, respectively. Furman Selz waived fees of $5,585,
$4,025, $3,941, $2,242, $701 for the Growth, International, Value, Small Cap,
and Municipal Bond Portfolios, respectively.
Pursuant to a Services Agreement between the Funds and Furman Selz, Furman
Selz will provide the Funds with transfer and dividend and capital gain
disbursing agent services, for which it receives a fee of $15.00 per account
per year, plus out-of-pocket expenses. Pursuant to the Fund Accounting
Agreement between the Funds and Furman Selz, Furman Selz assists the Funds in
calculating net asset values and provides certain other account services for
each Fund for an annual fee of $30,000 per fund plus out-of-pocket expenses.
For the period ended December 31, 1995, Furman Selz was entitled to Transfer
Agent fees of $956, $624, $700, $451 and $274 for the Growth, International,
Value, Small Cap and Municipal Bond Portfolios, respectively. For Fund
Accounting Services, Furman Selz earned fees, including out of pocket
expenses, of $14,055, $22,642, $12,265, $11,977 and $8,279 for the Growth,
International, Value, Small Cap and Municipal Bond Portfolios, respectively.
The estimated expense ratios for the Funds are as follows: Growth -- 0.63%;
International -- 0.81%; Value -- 0.63%; Small Cap -- 0.78%; Municipal Bond --
0.53%. It is expected that HCCI will reimburse the Trust for expenses, if
necessary, to maintain these expense ratios at estimated levels. As of
December 31, 1995, the such reimbursements would have been as follows:
Growth -- $453; International -- $3,967; Value -- $8,911; Small Cap --
$19,864; and Municipal Bond -- $20,707.
4. SECURITIES TRANSACTIONS.
A. Purchase and sale transactions. The aggregate amount of purchases and
sales of investment securities, other than short-term securities, for the
period ended December 31, 1995 were as follows:
<TABLE>
<CAPTION>
COMMON STOCKS
AND CORPORATE BONDS
-----------------------
PURCHASES SALES
----------- -----------
<S> <C> <C>
Growth................... $74,716,606 $17,770,031
International............ 51,284,882 3,245,318
Value.................... 64,386,092 13,499,279
Small Cap................ 33,056,615 3,142,782
Municipal Bond........... 18,619,164 1,907,200
</TABLE>
26
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (continued) -- December 31, 1995
B. Federal Income Tax basis. Cost for book and Federal income tax
purposes were substantially identical as of December 31, 1995. Gross
unrealized appreciation and depreciation on investment securities at
December 31, 1995, based on cost for Federal income tax purposes is as
follows:
<TABLE>
<CAPTION>
NET
GROSS GROSS UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION (DEPRECIATION) (DEPRECIATION)
------------ -------------- --------------
<S> <C> <C> <C>
Growth.......................... $5,069,992 $(2,436,138) $2,633,854
International................... 3,001,727 (915,328) 2,086,399
Value........................... 3,876,316 (987,920) 2,888,396
Small Cap....................... 2,010,757 (1,846,664) 164,093
Municipal Bond.................. 100,775 (10,782) 89,993
</TABLE>
5. CAPITAL SHARE TRANSACTIONS. The Trust is authorized to issue unlimited
shares of capital stock with a par value of $0.001 each. Transactions in
shares of the Funds for the period ended December 31, 1995 were as follows:
<TABLE>
<CAPTION>
SMALL MUNICIPAL
GROWTH INTERNATIONAL VALUE CAP BOND
------ ------------- ----- ----- ---------
<S> <C> <C> <C> <C> <C>
Beginning Balance....... 2,000 2,000 2,000 2,000 2,000
--------- --------- --------- --------- ---------
Shares Sold............. 6,957,477 5,196,150 5,431,186 3,563,996 1,788,853
Shares issued in rein-
vestment of net invest-
ment income and capital
gain distributions..... 5,538 62,056 46,456 12,591 13,256
Shares redeemed......... (892,316) (133,276) (287,815) (333,303) (114,345)
--------- --------- --------- --------- ---------
Net increase in shares.. 6,070,699 5,124,930 5,189,827 3,243,284 1,687,764
--------- --------- --------- --------- ---------
Closing Balance......... 6,072,699 5,126,930 5,191,827 3,245,284 1,689,764
========= ========= ========= ========= =========
</TABLE>
6. MANAGEMENT OF THE TRUST. The Trust's Board is responsible for the overall
supervision and management of the business and affairs of the Trust, including
(i) the selection and general supervision of the Investment Managers that
provide day-to-day portfolio management services to the various Portfolios;
and (ii) for Portfolios for which more than one Investment Manager has been
retained, allocation of that Portfolio's assets among such Investment
Managers. In particular, the Board may, from time to time, allocate portions
of a Portfolio's assets between or among several Investment Managers, each of
whom may have a different investment style and/or security selection
discipline. The Board also may reallocate a Portfolio's assets among such
Investment Managers or terminate particular Investment Managers, if the Board
deems it appropriate to do so in order to achieve the overall objectives of
the Portfolio involved. The Board may also retain additional Investment
Managers on behalf of a Portfolio subject to the approval of the shareholders
of that Portfolio, in accordance with the Investment Company Act.
As indicated above, day-to-day investment decisions for each of the
Portfolios are the responsibility of one or more Investment Managers retained
by the Trust. In accordance with the terms of individual investment advisory
contracts relating to the respective Portfolios, and subject to the general
supervision of the Trust's Board, each of the Investment Managers is
responsible for providing a continuous program of investment management to,
and placing all orders for, the purchase and sales of securities and other
instruments on behalf of the respective Portfolios they serve.
27
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (continued) -- December 31, 1995
The Managers are as follows:
Growth Equity Portfolio -- Jennison Associates Capital Corp.; Westfield
Capital Management Company, Inc.
International Equity Portfolio -- Brinson Partners, Inc.
Value Equity Portfolio -- Cowen Asset Management; Institutional Capital
Corporation.
Small Capitalization Portfolio -- Clover Capital Management, Inc.;
Frontier Capital Management Company.
Limited Duration Municipal Bond Portfolio -- Morgan Grenfell Capital
Management Incorporated.
7. DERIVATIVE INSTRUMENTS. The International Equity Portfolio may invest in
various financial instruments including positions in forward currency
contracts, currency swaps and purchased foreign currency options. The Fund
enters into such contracts for the purpose of hedging exposure to changes in
foreign currency exchange rates on their portfolio holdings.
A forward foreign exchange contract is a commitment to sell or buy a foreign
currency at a future date at a negotiated exchange rate. The Fund bears the
market risk which arises from possible changes in foreign exchange values.
Risks may arise from the potential inability of counterparties to meet the
terms of their contracts and from unanticipated movements in the value of the
foreign currency relative to the U.S. dollar. Forward foreign exchange
contracts may involve market or credit risk in excess of the amounts reflected
on the Fund's statement of assets and liabilities.
The gain or loss from the difference between the cost of original contracts
and the amount realized upon the closing of such contracts is included in net
realized gain on foreign exchange. Fluctuations in the value of forward
contracts held at December 31, 1995 are recorded for financial reporting
purposes as unrealized gains and losses by the Funds.
28
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Notes to Financial Statements (continued) -- December 31, 1995
The table below indicates the International Equity Portfolio's outstanding
forward positions at December 31, 1995:
<TABLE>
<CAPTION>
Value on Unrealized
Contract Maturity Value on December Appreciation/
Country Amount Date Origination Date 31, 1995 (Depreciation)
-------------- ------------- -------- ---------------- ---------- --------------
<S> <C> <C> <C> <C> <C> <C>
Buy Australia 3,900,000 02/16/96 2,869,620 2,912,231 $ 42,611
Sell Belgium 24,700,000 02/16/96 (830,713) (842,517) (11,804)
Buy Canada 2,100,000 02/16/96 1,541,341 1,539,636 (1,705)
Buy Canada 2,200,000 02/16/96 1,623,522 1,612,952 (10,570)
Sell France 1,200,000 02/16/96 (238,124) (245,568) (7,444)
Buy France 2,498,388 01/03/96 505,651 510,750 5,099
Sell France 7,900,000 02/16/96 (1,605,975) (1,616,655) (10,680)
Sell France 9,300,000 02/16/96 (1,839,399) (1,903,152) (63,753)
Sell Germany 1,600,000 02/16/96 (1,092,225) (1,120,528) (28,303)
Sell Germany 2,400,000 02/16/96 (1,683,563) (1,680,792) 2,771
Buy Italy 1,750,000,000 02/16/96 1,057,082 1,102,500 45,418
Buy Italy 4,440,000,000 02/16/96 2,760,761 2,797,200 36,439
Sell Japan 100,000,000 02/16/96 (1,052,532) (977,000) 75,532
Sell Japan 200,000,000 02/16/96 (2,099,627) (1,954,000) 145,627
Sell Japan 439,000,000 02/16/96 (4,395,685) (4,289,030) 106,655
Buy Malaysia 44,769 01/03/96 17,626 17,636 10
Sell Netherlands 300,000 02/16/96 (184,106) (187,947) (3,841)
Sell Netherlands 1,500,000 02/16/96 (949,221) (939,735) 9,486
Sell Netherlands 2,300,000 02/16/96 (1,404,237) (1,440,927) (36,690)
Buy Spain 128,000,000 02/16/96 1,035,448 1,056,000 20,552
Buy Sweden 3,000,000 02/16/96 401,875 450,660 48,785
Buy Sweden 3,900,000 02/16/96 574,815 585,858 11,043
Sell Switzerland 100,000 02/16/96 (82,843) (87,290) (4,447)
Sell Switzerland 950,000 02/16/96 (834,063) (829,255) 4,808
Sell United Kingdom 400,000 02/16/96 (630,360) (619,720) 10,640
--------
$386,239
========
</TABLE>
29
<PAGE>
THE HIRTLE CALLAGHAN TRUST
Financial Highlights+ (unaudited)
December 31, 1995
<TABLE>
<CAPTION>
GROWTH INTERNATIONAL VALUE SMALL CAP MUNICIPAL BOND
AUGUST 8, 1995 AUGUST 17, 1995 AUGUST 25, 1995 SEPTEMBER 5, 1995 OCTOBER 10, 1995
(COMMENCEMENT (COMMENCEMENT (COMMENCEMENT (COMMENCEMENT (COMMENCEMENT
OF OPERATIONS) OF OPERATIONS) OF OPERATIONS) OF OPERATIONS) OF OPERATIONS)
THROUGH THROUGH THROUGH THROUGH THROUGH
DECEMBER 31, 1995 DECEMBER 31, 1995 DECEMBER 31, 1995 DECEMBER 31, 1995 DECEMBER 31, 1995
----------------- ----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period:................. $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00
------- ------- ------- ------- -------
Income from Investment
Operations:
Net investment
income/(loss):............ 0.01 0.02 0.09 0.03 0.11
Net realized/unrealized
gain/(loss) on
investments:.............. 0.23 0.70 0.89 (0.05) 0.11
------- ------- ------- ------- -------
Total from Investment
Operations:................ 0.24 0.72 0.98 (0.02) 0.22
------- ------- ------- ------- -------
Less Distributions:
Dividends from capital
gains:.................... 0.00 (0.01) (0.03) 0.00 0.00
Dividends from net
investment income:........ (0.01) (0.13) (0.09) (0.04) (0.11)
------- ------- ------- ------- -------
Total Distributions:........ (0.01) (0.14) (0.12) (0.04) (0.11)
------- ------- ------- ------- -------
Net Asset Value, End of
Period..................... $ 10.23 $ 10.58 $ 10.86 $ 9.94 $ 10.11
======= ======= ======= ======= =======
Total Return................ 2.40% 7.15% 9.60% (0.19)% 2.17%
Net Assets End of Period (in
thousands):................ $62,116 $54,225 $56,401 $32,268 $17,081
Ratios to Average Net Assets
of:
Net investment income:*.... 0.26% 0.78% 2.47% 0.93% 4.84%
Expenses net of
waivers/reimbursements:*.. 0.63% 0.81% 0.63% 0.78% 0.53%
Expenses before
waivers/reimbursements:*.. 0.66% 0.86% 0.71% 1.02% 1.29%
Portfolio Turnover Rate..... 37% 8% 36% 13% 17%
</TABLE>
- ----------------
+ Per share amounts are based on the average number of shares outstanding
during the periods from commencement of operations through December 31, 1995.
* Annualized
See accompanying notes to financial statements.
30
<PAGE>
THE HIRTLE CALLAGHAN TRUST
TRUSTEES AND OFFICERS
TRUSTEES
DONALD E. CALLAGHAN* Principal, Hirtle Callaghan & Company, Inc.
JONATHAN J. HIRTLE* Principal, Hirtle Callaghan & Company, Inc.
ROSS H. GOODMAN Vice President, American Industrial Management &
Sales, Inc.
JARRETT B. KLING Partner, Radnor Advisors, Inc.
DAVID M. SPUNGEN* Director, CMS Capital Management
RICHARD W. WORTHAM, III President, Houston VMC, Inc.
* "Interested Person" as that term is defined in the Investment Company Act of
1940.
- --------------------------------------------------------------------------------
OFFICERS
DONALD E. CALLAGHAN President
DAVID E. BRANIGAN Vice President and Treasurer
LAURA ANNE CORSELL, ESQ. Secretary
JOHN J. PILEGGI Assistant Vice President
GORDON FORRESTER Assistant Vice President and Assistant Treasurer
JOAN V. FIORE Assistant Secretary
SHERYL HIRSCHFELD Assistant Secretary
- --------------------------------------------------------------------------------
INVESTMENT ADVISOR CUSTODIAN
- ------------------ ---------
Hirtle, Callaghan & Company, Inc. Bankers Trust Company
575 East Swedesford Road 34 Exchange Place
Wayne, Pennsylvania 19087 Jersey City, New Jersey 07302
ADMINISTRATOR AND DISTRIBUTOR COUNSEL
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Furman Selz LLC Stradley Ronon Stevens & Young
230 Park Avenue 2600 One Commerce Square
New York, New York 10169 Philadelphia, Pennsylvania 19103
This report is for the information of the shareholders of The Hirtle Callaghan
Trust. Its use in connection with any offering of the Trust's shares is
authorized only in case of a concurrent or prior delivery of the Trust's
current prospectus.
